Down in Australia, since 2001 house prices have gone up about 40%, while rents in the same time period have gone up a meager $10 a week. That's not inflation. That smells like deflation being masked by cheap borrowing. That IS NOT 70's style inflation.

100% of this boom comes from outside the border, where leverage goes unquestioned. Most of the leverage is thru "offshore" capital (formerly domestic capital now hiding in tax havens) which is leveraged via central banks. The central banks continue to be deathly afraid of deflation.

so inflation is coming from outside our national borders, eminating from Casino cyberspace, while deflation is happening within our borders, the result of good old fashioned depletion.

Make no mistake - Greenspan wasn't so much bailing out investors with the EZ money policy as he was bailing out the wasteful American suburban lifestyle. Without all that easy credit, the US economy would have begun adjusting to new realities of depletion (deflation) rather than investing more heavily in suburban expansion. So unlike the article says, any profits recieved from this continued folly are misallocation - no different than digging holes and filling them back in.