Asset Bubble is just another way of saying inflation and inflation is as Dr Friedman said a monetary phenomenon. Prices follow where the money is flowing to and in this case it is flowing towards Hard Assets. Low interest rates will not help the U S because it wasn't high interest rates that got us in trouble but a lack of credit standards. So low interest rates aren't going to fix anything, but only an unwinding of all the bad credit which was issued will and that is going to take a long time. .
Housing won't come back. Housing inflation was built on ever greater amounts of leverage and now that’s gone so it will take years to unwind. Ben Stein wrote a great piece how in the Bay Area sellers refuse to drop their prices which all the RE Brokers say is great but then they complain that there are no sales happening. It will take a long time for Sellers to reconcile themselves to the fact that there are no buyers and that prices have to drop 25% or more. The De-Leveraging of the American economy will take years to accomplish and will destroy the consumer and the equity markets on its way.
My advice to myself is to be long on hard assets and short the market.