New Bubble Identified

Now that Alan Greenspan's credit bubble gift to Wall St, which led to the not so small technology bubble and the monster housing bubble, has come to an end the search has been on for a new one. Ben Bernanke's attempts (lowering interest rates again to cure the problems caused by low interest rates - years of studying economics and that's all he can come up with) have only provided a small commodity bubble gift to Wall St, though managing to get as much money as possible out of everyone for oil, food etc, has, when added to all of the other misallocation of scare resources of the previous bubbles, finally managed to destroy wealth to such a degree that a recession is now unavoidable. In such a environment, unfortunately for Wall St, the commodity bubble has had to deflate or at least stop going up.
The only action left in town then for people operating in the market, now that they and all the assets they held were overpriced, was to sell themselves short and they've happily been making money out of that for quite some time. Unfortunately the long term prospect for making serious easy money for the Wall St financiers is not so good as eventually there'll be none one left to short except themselves and the investor who really wants assets to go up and not down might begin to not believe their slick snake oils sales pitches.
Something new was needed and it couldn't come from the fed any longer as Greenspan and Bernanke have really killed that golden goose. A new bigger fatter goose was needed this time and the obvious contender was the US government itself. So the new game in town is to identify the companies whose stock prices have rightly been hammered by the market (it is efficient in the medium term) which will be bailed out by the US governement and buy them. There's so much money in the pot this time and the good thing is, like the commodity bubble, it puts its hands in everyones pockets. The only flaw in the plan is if the US government won't come through but that is very unlikely. As long as the not doing the bailouts is made look so scary then the politicians came make a fuss but say they had to do it for the national interest. The wheels are in motion:

The billionaire investor said last Friday was "an economic Pearl Harbour" and that the USD700 billion-plus rescue package being negotiated is "absolutely necessary" after his Berkshire Hathaway group said it is taking a USD5 billion stake in troubled investment bankers, Goldman Sachs.
"I am betting on the Congress doing the right thing for the American public and passing this bill,'' Buffett said.