‘FIRE’ is now Toast so What’s the Next Bubble? Health Care? Biotech? Alternative Energy? Web 2.0? (The iTulip Guru’s Prediction May Surprise You)

Posted: May 7, 2008 in Your Money
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[Harpers] The next bubble: Priming the markets for tomorrow’s big crash
” Because all asset hyperinflations revert to the mean, we can expect housing prices to decline roughly 38 percent from their peak as they return to something closer to the historical rate of monetary inflation. If the rate of decline stabilizes at between 6 and 7 percent each year, the correction has about six years to go before things stabilize, leaving the FIRE economy in need of $12 trillion. Where will that money be found? “

My 2-Bits: If you don’t know what FIRE is then the article is a must-read. While doing so please bear in mind Mr. Janzen’s current occupations, but his track record is pretty good and the logic presented sound, IMO.
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