I know an asset bubble when I see one (nothing that happened to the stock market after 1999 has been much of a surprise to me). Right now we're in a collossal mortgage finance bubble in which all caution has been thrown to the wind. It is exactly analogous to the dot-com frenzy, which no one remembers the lessons of, since, hey, that was five years ago. Although I'm appalled at the inflation of the last two years, I think our future is one of deflation and depression (as this article describes).
Here's what's unfortunate. When everything goes to hell, the Democrats will get back into power. And then it's scorched earth and revenge time against the McChimpler theocrats (I mean look at the insane fever these people have worked themselves into. What happens if they get the keys back?). So enjoy the quasi peace, normality, and "red-state" ascendance of today. It ain't going to last.
Heck, I don't know what the future holds, but I'm just sayin'. I don't know why I'm posting this, other than that this is what my intuition is telling me. But don't worry, I'm not going to wear this blog like a "The End Is Near" sandwich board. Maybe down the road if things play out this way, I'll occasionally link back to this post and say, "Huh?!? Huh?!? Who's your daddy?"
Okay. Now, where did I put my meds...