Spotting asset bubbles is hard because there is almost always a good underlying reason for what’s going on. Canals, railways and the internet really were going to revolutionize the economy. The mistake with bubbles is that prices disconnect from what the new development will justify. The difficulty for those of us trying to spot bubbles is to tell how much is really justified, and how big the disconnect will become.
Today there are two obvious bubble candidates, and as usual, both come with good underlying reasons for their...
jmackin2 You mean money? Yeah I’m worried too
jmackin2 good
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