What will be the next bubble?

Finally, I have read something about the whole credit crisis, Wall Street meltdown, et al, that makes sense to me: This op-ed piece by Thomas Friedman .

Quote:

Lets understand what happened here. Wall Street — the financial industry — became a bubble in recent years thanks to an excess of liquidity and the oldest bubble maker in history: greed. Some of the smartest people forgot one of the oldest rules of investing: There is no such thing as a risk-free return. When you reach too far for yield, sooner or later you get burned….Just like the dot-comers in the 1990s, the financial stocks got inflated to ridiculous levels and salaries for Wall Street executives reached ridiculous heights. You are now watching live and in color that bubble burst: "Thank you for playing, Lehman Brothers."

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Lots of sound advice, also.

Reading it makes me wonder what the next bubble and subsequent bust will be — and there will be a next bubble/bust as long as there is greed and there will always be greed.

I’m guessing the next bust will be in about five years and will involve wind mills. But that’s just a guess.

Bonus link: Despite its alarming headline, this comprehensive piece in the Wall Street Journal provides a broad explanation of the current situation and what some of the options are. From a common sense perspective, it seems to me that some type of Resolution Trust Corporation model should be instituted. Rather than panic selling, the government may actually end up with something of value. (Of course, this is my observation — and my favorite economist is Navin Johnson.)

Another link: Freakonomics author Steven Levitt interviews colleagues Doug Diamond and Anil Kashyap at the University of Chicago School of Business for their interpretation of what’s going on.