We escaped the last big bursting of a bubble - the dotcom bubble - with a relatively light U.S. recession. On that occasion, the world economy found its way back on track fairly quickly.

For years, we've grown dependant on American consumers as the world's spenders of last resort. They've kept Europe out of recession, allowed China to industrialise, and prevented global deflation. But at the same time, they've not been looking after their own futures.

I actually profoundly think the world's a better place when economics is fairly boring... The more boring the better.

Developers see no sign of a 'bubble' bursting.

If there were a lot of homes in inventory, we could anticipate a bubble bursting, but there isn't,

Unemployment is sufficiently high, and the economy has just come out of a relatively mild recession, so inflation pressures are relatively soft right now. It will take a while of solid growth before we have upward pressure on inflation, so the Fed can be a little relaxed about it.