The Bubble Bubble (or Double Bubble Trouble)

I’m not trying to be cute (well, that might be hard at this point) but the number of stories in The New York Times about housing, market, economic, and other types of bubbles is starting to reach grand or grandiose proportions. I’ve long thought that residential housing was a big ol’ bubble just waiting to burst and still think it is in most of the metropolitan areas of the country but it does seem that the hype of bubble myth-making will have its own bubble.
Here are just a few pieces in The Times lately. Each on is more persuasive than the other. Our new deficits, now owned and managed by the Chinese, coupled with massively over-financed housing, tied with over-leveraged families with credit debt and no savings, wrapped around an economy based on a war-time footing rather than an investment-side caravan, strapped together with shaky free-trade markets and a speculative oil and gas system does indeed seem like disaster waiting to happen. The house of cards has to fall at some point.
But I also wonder out loud whether the bubbles that all these journalists are prognosticating are actually missing a larger piece of the puzzle that we’re not thinking about. I don’t know what that puzzle piece is – perhaps it’s AIDS or avian flu or terror or just some new technology – but my guess is that something else will make the cards fall and not the house itself. In other words, it will take some outside force to push the the thing over; cards themselves have no desire to change their position in the fine hierarchy of various advantageous positions.
The bubble stories are coming fast and furious but they, too, probably represent a bubble that can’t see the next prick on the horizon.