Hoenig said he fears keeping rates too low for too long could lead to excessive risk-taking by investors, feeding new speculative bubbles.
Once again, we are seeing the puncturing of a speculative bubble that was the result of asset prices soaring high above the underlying value of the assets.
The speculative bubble was based on a bet that served as its own foundation.
Concerns about a new speculative bubble fall into three categories.
Yet Wall Street continues to struggle through the aftereffects of the biggest speculative bubble in history.
Like all speculative bubbles, many made a fortune in the beginning.
When it was left alone, the Street unleashed a wild speculative bubble that almost destroyed the world's financial system when it burst.
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