Bubble III

Governments have injected trillions of dollars into financial systems. We're not set up to quickly deploy that much money, and loans are still slow. The big infrastructure projects are still months to years away.

The money has to go somewhere though. So where's it going? The market.

A few months ago, in a fit of contrarian optimism, I predicted Dow 9000 by Nov 2009. It's June and the Dow is at 8800; we could easily hit 9000 this month. That's not necessarily good. A November 9000 could be compatible with a reasonable recovery, but a June 9000 is crackers.

I think I hear something inflating ...