Bubbles are bouncing everywhere in the bathtub of our world, and they are seemingly increasing in size. Unfortunately, or depending on how you look at it, fortunately, this is more man made than a natural phenomenon.
I remember Warren Buffett's letter to Long Term Capital offering to by them out as they imploded. You did not have your retirement in Pets.com did you? Many Americans, noting that home prices have never had significant depreciation, became accidental landlords if they were fortunate enough to hang on. Most were not so lucky.
What's it like inside the bubble? Oh, my head is giving me trouble.
Where is the bubble now?
In an excellent editorial in Investors Business Daily, Scott Powell says it is already here.
Is the bubble in the worlds reserve currency? And what if that bursts?
Damon Vickers of Nine Points Capital Management has an idea:
Powell makes a great point in his editorial that "risk has shifted from the private sector to the public sector, with the US government debt market being the new bubble". God help us!
We have inmates running the asylum, and without a significant shift in planning, life as we know it is finished. It is imperative we urgently go back to the Reagan principle of sound money, which will take placing those with economic insight in charge. As Powell accurately states, Congressman Paul Ryan and his Roadmap for America is a fine place to start.
Time is not on our side. Inaccurate cost estimates for risk are expensive, and there is no free lunch. Make your voice heard now, before it is too late.
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