Thursday, September 1, 2011

American Economy Loves Bubbles

Why do we love to create economic bubbles to solve previous economic bubbles?

Right around the late 90's we had the tech bubble. If you put money in a tech stock you made money no matter if it was profitable or not.

The bubble then collapsed and the government decided lets make a new bubble. The government created a new housing bubble. Government's policy was that said everyone should own a house no matter if they can afford it or not.

This bubble then collapsed so the government said hey lets create a new bubble. Lets spend and bail our way out of this bubble into a new debt bubble.

Now its 2011 and our debt bubble will burst. When it does it will be nasty, but the government will not learn anything and it will try  to create the next bubble.

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