Paul Krugman, the Princeton economist who just won the Nobel Prize, talking about the economic bubble said this:

How bad will that aftermath be? The U.S. economy is currently suffering from twin imbalances. On one side, domestic spending is swollen by the housing bubble, which has led both to a huge surge in construction and to high consumer spending, as people extract equity from their homes. On the other side, we have a huge trade deficit, which we cover by selling bonds to foreigners. As I like to say, these days Americans make a living by selling each other houses, paid for with money borrowed from China.

As for the stock market, Donald Trump, who doesn't own stock said this morning on a business news show that on Friday he was ready to buy 100's of $$ millions in stock for the first time because the bargains were too tempting- but before he could act, the market climbed so he is still not in it. He is one of the cats benefiting from all this because he deals with cash. He picked up real property in NY on what he called pennies on the dollar.

"Imagination is more important than knowledge." - Albert Einstein