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and insecurity.

Real estate, long regarded as a safe haven for investors and a hedge against inflation, became the "hard asset" for investors. As the government responded with sweeping changes in leadership and economic (monetary and fiscal) policy, investors became speculators and Wall Street, encouraged by an regulatory attitude of de-regulation and disregard, quickly took advantage by inventing new, and now nefarious, financial instruments. In the presence of these conditions, the mix was just right for a bubble in the real estate market to rise exponentially, and collapse at nearly the speed of light.

The recession ahead is projected to be deep and severe. Currently, the government has demonstrated that it is best at fumbling the ball, over and over again, by intervening in the financial market at the expense of trillions of taxpayer dollars. The rationale seems to be one of "Our Team is too big to fail", so let's throw money at it and we will be sure to win the game. Many a fallen emperor has believed the same, while the barbarians gathered outside the gate. In the short term, investors are left wondering where their money will be safe and when will the next bubble appear?

Reference: Insana, Ron. TrendWatching: Don't be Fooled by the Next Investment Fad, Mania, or Bubble (2002). HarperCollins. New York

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