As the markets keep on going through turbulence, and many conflicting opinions are heard as to whether this is just a harbinger of things to come (my position) or just a "welcome correction" (still that of most "serious" pundits and the conventional wisdom), what's most striking to me - and very revealing on its own - is how suddenly everybody is talking about the real estate bubble as it if were the most obvious thing.

The very people that, in many instances, denied that there was any kind of bubble, or that house prices were a problem in any way, and denied that market valuations of certain assets were completely unreasonable, are now saying, in hindsight, that it was indeed a bubble and, while they are still saying that nothing much will really happen fro mthe end of the bubble (other than silly people getting punished), they are already hard at work trying to pin the blame elsewhere.

"A cheerleader, moi?", they ask, outraged.

But their new attitude ensures, right now, that the crisis WILL spread. Let me tell you why.