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The big story today (and actually for awhile) is the collapse in gold, which has just fallen below $1500/oz.
If you look on Twitter, or anywhere else econ types chat, there's a lot of glee over this news.
Why should the decline of a relatively irrelevant commodity creating such a reaction?
There's two reasons for this:The latter point is the most significant.
To respond to the economic crisis, economists and mainstream policy makers have favored highly unusual policy measures (massive Fed balance sheet expansion, massive stimulus, etc.). These ideas are usually based on years of traditional economic research (Keynesianism, monetarism, etc.).
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