Realists Are Often Mislabeled as Pessimists

 Around 20 months ago, I mentioned to an old high school classmate that we as a country were in a Fed induced "Everything Bubble".  He dismissed my statement with the phrase, "your perception is your reality".

Well, I am still here and "my perception" is now "your reality".  The real shit show is yet to begin.  

If you have been borrowing and spending as if the good times would never end during the past few years, you are in for a rude awakening as "your reality" was a dream.  It was a mirage in the desert.  It felt real and maybe it was for a short time but the new reality is not going to match up with your expectations.

Increasingly, great Americans are beholden to their government in ways that would have been unimaginable to Americans 100 years ago.  The financing contracts for their educations and the very roofs over their heads are increasingly held by a government sponsored enterprise.  

The purchasing and refinancing bubble in the real estate market has been brought to you by Fannie Mae and Freddie Mac and those who sell their long term contracts to them (which is to say every outlet for mortgages in the country).  If you purchased a home or refinanced with cash out your existing home during this most recent real estate bubble, you are now in Uncle Sam's pocket.  So, not only are your children in debt to Uncle Sam for their student loans, you are now in debt to him for your home loan.