A commodity bubble by another name is inflation. What with all that fiat money sloshing around the world sooner or later it had to lead to inflation. Too much money chasing to few goods. When was the last time gold was this high? Remember the banana republic inflation of the 1970’s?
Isn’t it the Fed’s job to contain inflation and not try to be the over-sensitive catcher in the rye rescuing Wall Street bankers from their own folly? We’d be better served by a computer program that non-politically adjusted key perimeters to keep inflation (M2 or M3) in the 2-3% range. The Fed seems to hop from bubble to bubble.
Printing ever more fiat money is the definition of inflation.