Fred's take on this situation has to be about the best I've seen. Spot on, plain sense, a pleasure to read (well, I imagined it being read in Fred's voice, so I should say a pleasure to
hear.)
Where'd you find it?
I even agree with his prediction -- likely next major step, after we finish digging out of this hole, will be yet another financial bubble.
The best guesses I've seen as to this next bubble will be something related to energy or infrastructure.
- Some combination of oil, coal, nuclear, wind, solar, geothermal, ... will be getting some serious investment these coming years.
- Ways to run our cars, trucks, homes and factories with less energy will be well received and in some cases well financed.
- The perennial favorite of James Dines (the original gold bug) over these last few years, Uranium, might finally see a strong bid again.
- The infrastructure, such as gas and oil lines (I hear Sarah Palin knows a thing or two about these) and electric power lines (such as T Boone Pickens wants Texas or Congress to fund, from his windmills in West Texas, to the population centers in Dallas and Houston) will show strong growth and opportunities for fame and fortune.
- Congress already has committed vast sums to Ethanol subsidies. I didn't say all this investment would make sound scientific or economic sense.
- Congress will (oops -- just did) fund GM and Ford to make more efficient cars.
- The environmental wackos will moderate (oops again - have moderated) their stance to allow for more nuclear power plants.
The massive pile of new Treasuries being printed as we speak will find their way, via Sovereign Wealth Funds, back into various of these energy related projects, which will require a massive investment to get going.
Whether it's the Global Warming Left, looking for alternative energy sources, or the Drill Here, Drill Now neighbors of mine here in Texas (when they say "here", they mean "here"), or the Saudi's who know but can't publically tell us that their oil reserves have peaked, or the Russians, trying to extend their monoplistic control over energy supplies to Europe, ...
Mr. McGuire: I just want to say one word to you - just one word.
Ben: Yes sir.
Mr. McGuire: Are you listening?
Ben: Yes I am.
Mr. McGuire: Energy.
Sometimes predicting the future is just too easy.
I'm not necessarily rushing into all this Monday morning. For one thing, what I have to invest, some coins I found under my sofa cushions, wouldn't stretch far enough to invest in all these at once. And for another thing, we are still on the down stroke of this last bubble - real estate, mortgages, mortgage backed securities,credit swap derivatives thereof, and financial institutions thereon. We've got our year or three of sack cloth penance in recessionary purgatory to spend first, before this new bubble starts to really stretch its wings.
But over the next ten years, it looks to be the place to be.