"An Enormous Triple Bubble Bust Has Begun"
by David Haggith
Excerpt: "The three most overinflated bubbles in history are all about to break at the same time. Stocks, primarily due to AI stocks, have never been priced so high above the stratosphere to where one analyst says they are clear up in the “thermosphere.” They are at a level above total GDP that has never been seen before. Housing is priced higher above wages than at any time in history, dwarfing even the huge housing bubble that busted us all into the Great Recession, bringing down banks around the world. And the biggest bond market in world history is now blowing out interest rates all across the bond spectrum at a highly unusual velocity of rising rates while containing the largest national debt ever seen and while funding a huge part of that stock bubble. It’s all going to blow up when the Big Bond Bubble explodes, and that is the one that is already fracturing all over its surface.
US budget deficit jumps to nearly $2 trillion: "Washington -The U.S. budget deficit climbed to nearly $2 trillion in the fiscal year that ended Sept. 30, according to the Congressional Budget Office, deepening the federal government’s persistent red-ink trend. The $1.993 trillion deficit was 12% above the 2025 level in nominal dollars, reaching the highest level since 2021. The U.S. spent $7.4 trillion last year, up 6%, and it collected $5.4 trillion in revenue, up 3%."
The US deficit has been on track with the trend of recent years. The only times we ever ran notably bigger deficits were during the historically massive bailouts of the Great Recession, and the even larger bailouts required by the ill-conceived economic lockdowns of the Covid crisis when Trump and then Biden forced most of the US population to stop working and, so, stop producing. So did most of the rest of the world.
We pretty well run on crisis budgets now. The anomalous budget surplus years were the Clinton-Gingrich years, which George Bush entirely destroyed with his Bush Tax Cuts that saved lots of money for the wealthy and a little bit for the rest of us by choosing not to pay for what we were buying, but to go back to letting future generations buy it for us. That tax-cut bill caused years of deficits under Bush and then years of massive deficits from bailing out the failed economy, which began in Bush’s final year. Those huge deficits were approved and scheduled during Bush’s final term to continue under Obama, which they did; and Obama, then, added extensions to those programs. We finally got down to more “normal” deficits but then blew that up entirely during all the Covid economic lunacy that started under Trump and continued with Biden.
It makes no difference which side of the Uniparty is in charge of government, except that we do marginally better when neither side is fully in charge, so that, at least, they are fighting each other, as happened in the Clinton-Gingrich years. Under either party’s full control, we choose to run massively irresponsible deficits until now we have a total national debt that is wobbling around like a drunkard, ready to do a face plant on the pavement."
Full, highly recommended article is here:
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