When you base your entire economy on ASSET INFLATION...and not production, trade or real wage growth...bad things happen.
The Greenspanian Economy of constant asset inflation will eventually devalue the dollar...it has already...but a much, much greater devaluation is necessary to have a "soft landing" ...
So Dow 12,000 is not really Dow 12,000. And the $300,000 house is not really a $300,000 house....if you are constantly defacto devaluing your currency...to give the illusion of a soft landing...
