Double Bubble - The Next Financial Malfunction

As confirmation, while talking to my real estate working friend in Napa California..

"its crazy," she says, shaking her head slowly in amazement. "its like its started all over again.. each listing is coming back with multiple cash offers above asking"

We have a Double Bubble on our hands.

And yes, with respect to real estate in Napa, many are first time buyers, and people getting back into the housing market in order to have a home in which to live.

But the is an enormous amount of speculation in both the housing and stock market driven by artificially low interest rates, is very schetchy...

Inventory of houses is tight, due to speculation, artificially driving up these prices again for the live in home owner. 

"They are doing it again," She says, " ..there is no way this house is worth that much."

And the ability for foreign interests to so easily buy a piece of America, is quite startling.

I mean, there is only one reason some other country has not come purchased a large contiguous chunk of America, just as just happened in Grease, a foreign interest purchased a few Greek Islands while there pants are down.

So, what is preventing foreign interests from causing another crash, and taking the money out of the country just as has happened in the last financial crash we just experienced. international interests profiting from financial collapse, and then profiting again by loaning us our own money back to bail us out... not to say there isnt enough blame to be evenly distributed among most industrial nations.

The solution, as the title of this blog suggests, is to get big money out of our politics.. moderately tax, and heavily regulate financial speculation in this country.

I highly recommend this read: Columbia University hosted a very tight study on what happened, and what should be done:

http://www4.gsb.columbia.edu/null?&exclusive=filemgr.download&file_id=70150

History will call this era the "financial wild west". Quite uncivilized. One day we will all be forced to comply.