The biggest financial bubble in history is being inflated in plain sight. This is the Mother of All Bubbles, and when it explodes, it will signal the end to the boom/bust cycle that has characterized economic activity throughout the developed world. Either unwilling or unable to call the bubble by its proper name, the media, Washington, and Wall Street describe the stupendous government expenditures on rescue packages, stimulus plans, buyouts, and takeovers as emergency measures needed to salvage the severely damaged economy.
All of this terminology is econo-jargon. It's like calling torture ''enhanced interrogation techniques.'' Washington is inflating the biggest bubble ever: the Bailout Bubble. This is much bigger than the Dot-com and Real Estate bubbles which hit speculators, investors, and financiers the hardest. However destructive the effects of these busts on employment, savings and productivity, the Free Market Capitalist framework was left intact. But when the Bailout Bubble explodes, the system goes with it.
Anyone stocking up on tinned food and shotguns? It will be a funny war, fought with fixed-gear bicycles and asymmetrical fringes.