patrick.net

Do tell. Name a bigger bubble in terms of percent of GDP.

I already named three; I found at least 10 if you extend to the Mercantile/Colonial era. Include Europe and there are many dozens. The gold-economies were rampant with speculative, inflationary bubbles that often exceeded the true value of the entire home country.

i think rand is secular anti-humanist drivel...

in terms of actual % inflation, the housing bubble isn't the biggest. in fact, some commentators say it isn't a bubble at all compared with previous speculative bubbles -- i don't know what sort of % increase is the 'cut-off'. however, the human effect is arguably more severe, because purchasing housing is held to be important, whereas purchasing gold, south sea shares, tulip bulbs, etc is a discretionary item. however, we all need somewhere to shelter, and the dream of home ownership was widely achievable in the mid-20th century. it disturbs me that it's going back to some medieval feudal arrangement without any concern on the part of govt... nearly went to a lecture on the failure of present day 'representative' govts and 'democracy' as it is manifested by these govts last night...

SP,

Thanks for sharing your observation. The rational me agrees that Lebanon is a limited situation and unlikely to expand much further. The irrational recall the plot summary of Left Behind books and cringe.

:/

Does it matter where we are starting from or trying to get to? The truth is it's tough for those who have thier homes and investments (not me) or are trying to establish foothold in the economy. There has definatlely been a shift in wealth and it takes more and more money to just be middle class. At times it's scares me that I might work all my life and not really scratch the surface. I left the west coast regretably because it was getting harder and harder to just keep up. I saved and saved had low dept load and it still wasn't enough. Things went up double digits the last five years how an you fight that? Now everyone waits with baited breath to se the coming crash of calamity. It's not going to help us who have not when those who have F up the economy for years. THis could be a bad fall and an even longer wait for us on the sidelines.

Is it true that the economy and growth in China is causing this run up of gas prices? Are the people prospering or just the rich few who own businesses? Does the chinese goverment really trust america long term or are those few who are only interested in short term gain doing most of the business? Seems the job picture in the US has become bleaker once it became apparent that chinese and indians will work for wages that are concidered poverty level here. American business has become greedy and bottom line thinking to the point where they'll go overseas for workers. There they will not be regulated to pay fair wages, health insurance, and retirement benefits. It has all but help destroy the middle class here.