I have not posted for a while and am not intending to do so to any extent for a while. The bubble is being inflated big time and while the stimulus from the government is almost over, I expect there will be more stimulus next year as the economy falters. Right now it is difficult to segregate what should happen in the economy versus what is happening due to stimulus. Since I expect stimulus to continue now into 2010, I am not making any short term predictions.
Medium to long term, however, we are building one hell of a big new bubble. Seriously, with unemployment over 10%, housing prices down to where a record number of houses are under water and debt at record levels with relatively minimal personal deleveraging to date (and public debt going off the charts), I see a very large bubble surrounded by pins and needles. What I do not know is when this bubble will burst. But it will and when it does God save us all.
Disclosures. None.
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