The 1987 Stock Bubble. The 2000 Tech Bubble. The 2006 Mortgage Bubble. Each of these bubbles drove the economy through a manic cycle of growth to a point of irrational exuberance (quoting Alan Greenspan) only to suffer a bi-polar swing of stock market crash, job losses, and industry devaluation, along with shattered consumer confidence. The Stimulus Bubble, as some are calling it, may produce similar results.
But there is one bubble no one is paying attention to – no one except for Jenny Anderson of the New York Times. If we are to extrapolate from Ms. Anderson’s recent report, the next economic bubble is… Life Insurance!
It’s tragic really. Millions of lost jobs. Foreclosed houses at record levels resulting in plummeting home values. Our auto industry on the verge of implosion along with 7 million related jobs. IRA and 401k values shrinking and forcing employees to work longer to retire. State and local governments teetering on bankruptcy. It’s bleak and there’s a lot of pain.
In 2006,