Bubblenomics Update

clipped from articles.moneycentral.msn.com Slowly but surely, I think that as "green shoots" come and go without really yielding a lot (read "Will economy's 'green shoots' wither?"), more folks will start to grasp that we have an enormous hole to dig ourselves out of. What landed us there was Federal Reserve money printing, which created the bubbles -- aided and abetted by greed on Wall Street and Main Street, and by authorities' abdication of responsibility. All of that allowed us to experience a decade-plus of bubblenomics. Until folks fully process those facts, I believe that they will find it virtually impossible to navigate this post-bubble period. higher interest rates caused by both our own massive borrowing needs and a weak currency will not be "fixed" via stimulation. Once we get to that point, only austerity and intelligent policies will extricate the country from that quagmire. The one bright spot? In that environment, the financially prudent may actually get a fair return for saving money.