Rust
 

There are a few bubbles in the paint at the edge of the trunk molding very tiny patch about a half inch area about 1/8 from edge of molding first sign of rust on car otherwise perfect condition, the sight of this has scared me what should I do?

Don't panic, rust by the trim isnt such a big deal, what most likely caused it was, when the trim was assembled to the car, or from vibration over years, the paint got chipped or worn around the hole for the plastic bushing that retains the trim. The trim itself, & dirt under the trim retained water in the area & made the rust form. You have 2 options now:
1. let it go, it will continue to worsen and eventually go thru.
2. Remove the trim carefully, remove the bushing in the rusty hole, treat the affected area with a wire wheel or sandblaster, then wipe a neutralizer on it (available at the local autobody supply) From here you can go with precoat, primer, and paint if you want to preserve the paint job, or you can cover it with a few layers of rustoleum or the like just to keep it from rusting again.
Reassemble the trim (put the bushing back in before the trim) Wiping a thin layer of RTV silicone around the bushing before you reinstall helps to seal out water around the hole's edge and also seals any paint that may chip when you install it.
In any case, if you decide not to address it, do not leave the bubbles intact, they become water pocket traps and greatly amplify the speed of decay over just scraping them open and leaving them, because they can't dry out when closed.
-Chris

Thanks for the information, after finding this I am thinking of removing all molding and clean and wax under it and address any issues I might find.

A good rust treatment.
 

POR-15 is best rust sealer that I know of. It is absorbed into rust and permanently seals it. Follow label instructions and it will not rust again. Of course, primer and finish coat.

http://www.por15.com