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Bubbles, Bubbles Everywhere

Back in February, Harper’s Magazine ran an article by Eric Janszen titled The next bubble: Priming the markets for tomorrow’s big crash. It is the most concise and most understandable guide to current economic problems I have seen yet. It is finally available online.

Not only does he lay out the most immediate causes and effects of the housing bubble and its collapse, but he also explores the historical roots of bubbles and our modern economy and predicts where and when the next bubble will arise.

This really is a must read.

Mr. Janszen is one of the principles at iTulip. The site design is a little scary, and the articles tend toward the wonkish. But it consistantly has been a great source of insight to the workings of our economy and a harbinger of bubbles and their popping.

I also recommend following Paul Krugman at the New York Times for economic analysis. Yes, his blog and recent book are titled Conscience of a Liberal. I don’t agree with many of his positions (for example, he is too pro-union in my opinion; the Amazon reviews of his book have other good criticism). But his analysis is firmly grounded in the numbers and his principles do not shift with the current Democratic talking points. He also links to opposing viewpoints while making his case, so you get a decently-rounded view of the issue.

We are headed into some difficult economic times and everyone should know why and how we can get out. These resources should help.