The Next Bubble?

It's discussed briefly now and then but frankly you don't hear much about it.It's as though no one wants to spoil the high we are on now that the economy is in recovery.But, look where denial took us last time.Life doesn't change while the bomb is ticking.It's when it stops ticking that everyone goes uh oh!

I'm talking about the potential commercial property bubble that some say is ready to burst.I'm reading an article by Aubie Baltin, titled Deja Vu All Over Again and frankly he just says it like he sees it.

"To begin, in order to get a clear understanding of today's true picture, we must first realize that the latest economic boom is built on a lie. Instead of a foundation of real GDP growth, it was based on a manipulated low inflation rate and tidal wave of new "out of thin air" Fiat money. That flood of cheap money did what it always does; produce a BUBBLE of risky investments and massive speculation."

Mr. Baltin is the editor of the newsletter Uncommon Common Sense.I have come to respect his writing for being exactly that.In this article he goes on to say the reason banks are still being so stingy about the money they lend is because they know there is another tidal wave of defaults on the horizon.Commercial Loans are being called, buildings are being foreclosed upon and just as the tsunami hit the residential real estate industry and wiped values right out of the books, the same fate is in store for commercial real estate.

What are people thinking?And if we arerecovering it's because trillions of dollars are being injected into every arm of the economy like a drug into a vein.It feels good now but some day we have to endure the pain of withdrawal.

Now, for anyone who truly wants to believe in recovery, please enjoy it, just don't ignoreit.You must take steps to protect your wealth if wave two of crisis befalls us.A few gold coins here or there are a good start.Some Silver American Eagle Coins never hurt anyone either.Maybe the greatest thing about having a gold coin or two to back up your portfolio is never needing them.Hope for the best - plan for the worst.Keep the gold hot line number handy.