Bubble Economics – Don’t Panic
I am shocked at what is happening to our country right now. It is like an incredibly bad dream. I put together the following two charts (see below). The first chart is the history of the Dow Jones Industrial Average for the last 18 years. I drew a line (just a guess) of the normal sustainable rate of growth of the American economy. Independent on where you draw the line, it is easy to see 2 bubbles in the last 18 years. The first one is commonly referred to as the internet bubble or the dot com bust. And the second is the mess that we are experiencing. When looking at the magnitudes of the bubbles, they are similar in size. It is true that the DJ is not a surrogate for the market as a whole, but certainly if there is excess liquidity driving the mortgage market, then the DJ would at least have a residual bubble from the liquidity. Read More
One of my favorite Chinese vegetables in Bok Choy. I like to put it in soups, and many Chinese recipes. Unlike many other vegetables, both the leaves and the stems are tasty in their own unique way. Perhaps, one of the best Bok Choy dishes is beef/chicken with oyster sauce. I was having a problem that each time I cooked this dish, the dish would turn out very runny, and the delicious oyster sauce was diluted. After many starts and stops, I finally figured out some of the intricacies of cooking with Bok Choy. 
I just finished watching the first presidential debate, and one of the first questions was what are some of the lessons that can be learned from the war in Iraq. This should have been a softball question for Obama because in order to learn we have to admit our mistakes. McCain response was clear that he was not going to admit any mistakes. In fact, he just reveled in the wisdom of the surge. Worse yet, Obama did not seize the opportunity, basically said we should leave Iraq and shift to Afghanistan.
Please find my campaign donation for $2300. I wish there was a way that I could legally donate more money, because I would do it in a heart beat.
