The truth is often painful but nonetheless it is important that we live in the real world. Just as little kids have to come to grips with the fact that there is no Santa Claus, it is necessary for millions of liberals, including many who think of themselves as highly knowledgeable about economic matters, to realize that President Clinton's policies sent the economy seriously off course. In Washington it is common to tout the budget surpluses of the Clinton years as some momentous achievement, as though the point of economic policy is to run budget surpluses. Of course the point of economic policy is to produce an economy that improves the lives of the people in a sustainable way. Clinton badly flunked this test.
We're not in a bubble. We're not in a boom and we're definitely not going to bust. We're watching a new ecosystem emerge, albeit prudently, which presents fairly fertile ground for entrepreneurs with sound business models and opportunity aplenty for those with the patience and persistence to ride the next wave.