Bill Fleckenstein expressed his suspicion of the economy in his "Contrarian Chronicles" column in MSN Money. He wrote:
The bottom line is, we are in a box because we had a mania. Post-mania, the best possible behavior would have been to admit our mistakes, let the markets clear, clean up the dead wood, hunker down for a while, and create the foundation for a long-lived recovery. The path chosen by the Fed, the government and, apparently, most people was to pretend the mania didn't happen, and try to power past it, still believing in the tooth fairy. This has caused only further misallocations of capital and other problems that will have to be sorted out prospectively. The idea that a short and sweet recession could close the book on our epic bubble is strictly a fairy tale.
I cannot agree with him more. Since April when S&P 500 is in 900 I have been getting concerned of another bubble.