Originally Posted by Xdeth
My feeling is that the new economy, the global economy, is a bubble economy, and will probably bubble more with continued globalization. Companies are operating more efficiently at shuffling resources and capitol around, a Government's activities can set the table for a bubble purposefully or accidentally, and the markets move money in and out of sectors much faster then ever before while also facilitating/encouraging bubbles. Bubbles do not necessarily return markets to bottoms below where the bubble started, and money gets generated on both the up and down. There is also quite a bit of "out of the box" bubble dividends thought out there, Daniel Gross "Why bubbles are great for the economy".
I agree that the U.S. economy is inclined toward bubble creation, and that the rest of the world is interconnected with the U.S. economy. I think that's very good for certain participants in the bubble, and very bad for everyone else. This constant irrational pursuit of overcapacity is only a good thing if you think it can last forever.
What's not clear is how any of this is specific to the south, or North Carolina.
I think that reversion to the mean is the long term trend for real estate, employment, and our standard of living. IMO the big question is what particular brand of -flation we will see. I'm of the opinion that general inflation will not occur until American consumers start creating private debt again. In the past that has been mortgage debt, and I don't know what will replace that. Stocks oughta be in for a wild ride, though.