Economics probably ranks low in the average man or woman's horizon. For most Americans, life's a struggle, but we do not blame Washington or the political parties; we blame ourselves. The only people who follow the economic projections are those that it least affects, the upper middle class and the wealthy—those with incomes that primarily come from investments.Environmentalists see the sky falling because of global warming. Retired generals see a mad Russian autocrat starting a general European war. Union people blame China for every closed factory. Microbiologists predict another pandemic. Pittsburghers tire of a lackluster football season for the Steelers. Political enthusiasts are trying to keep the embers alive, but the circus in Washington is turning into a yawner. There is one hidden bomb in the economy, the same that has plagued this country thrice in the last forty-three years: inflated asset bubbles. The big banks, brokerage houses, real estate investment trusts, hedge funds, and the like are nothing more than speculators feeding a massive Ponzi scheme, and that is not a conspiracist raving. There is simply too much money floating around, and it naturally finds assets to artificially inflate. The Fed is trying to deflate the bubble, albeit slowly, but their efforts evade all but academic economists.

Economics probably ranks low in the average man or woman's horizon. For most Americans, life's a struggle, but we do not blame Washington or the political parties; we blame ourselves. The only people who follow the economic projections are those that it least affects, the upper middle class and the wealthy—those with incomes that primarily come from investments.Environmentalists see the sky falling because of global warming. Retired generals see a mad Russian autocrat starting a general European war. Union people blame China for every closed factory. Microbiologists predict another pandemic. Pittsburghers tire of a lackluster football season for the Steelers. Political enthusiasts are trying to keep the embers alive, but the circus in Washington is turning into a yawner. There is one hidden bomb in the economy, the same that has plagued this country thrice in the last forty-three years: inflated asset bubbles. The big banks, brokerage houses, real estate investment trusts, hedge funds, and the like are nothing more than speculators feeding a massive Ponzi scheme, and that is not a conspiracist raving. There is simply too much money floating around, and it naturally finds assets to artificially inflate. The Fed is trying to deflate the bubble, albeit slowly, but their efforts evade all but academic economists.

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