I don't follow your asset bubble story, Tony. Let's assume that the 
asset is a share of stock. You seem to be saying that an asset bubble 
can exist without the bulls actually buying the asset. Is that what you 
have in mind? If not, where do the bulls get the money to buy it? And 
where does the money go when the bulls become bears? Your story seems 
incomplete. More importantly, now that I think of it, if the asset 
bubble is merely a book entry and not something real, how does its 
bursting affect aggregate demand or aggregate supply?

Pat Gunning