Attack Of The Bubble Heads

Looking back at a past report of the Contrarian Chronicles by Bill Fleckstein, I was reminded of the two starkly differing mind sets that people have regarding bubbles. "The problem with being a 'level head' as opposed to being a 'bubble head', is that when the aftermath of the stock mania played out, even level heads would have to suffer."

"The longer the insanity persists, the greater the frustration on the part of people who've acted prudently and tried to prepare themselves." As the article says, we can't all "live in a $1 million house..the income necessary to support the debt service just isn't there."

So hang in there level heads; prepare yourself for sure, but take comfort in the fact that you are right to be cautious. "We have seen drunken lending orgies in the past, and they always end in disaster."