cheap debt makes good bubbles.

Carlyle Group's managing director William Conway Jr. confirms that the rise in the stock market is related to "the availability of enormous amounts of cheap debt."

He adds:
"This cheap debt has been available for almost all maturities, most industries, infrastructure, real estate and at all levels of the capital structure." (But) "This liquidity environment cannot go on forever. The longer it lasts, the worse it will be when it ends... Of course when ends, the buying opportunity will be once in a lifetime."

Conway is right; the stock market IS floating on a cloud of cheap credit created by a humongous trade deficit, artificially low interest rates, and a 10% yearly expansion of the money supply. Like he says, "It cannot go on forever."

http://www.silverbearcafe.com/private/mortem.html