patrick.net

When did the definition of bubble change to "any time the price of an asset rises and then falls"?

I remember back when they called it a "business cycle".

Seriously, though. When the Fed dumps in 4-5 trillion dollars of unlevered capital (and freshly conjured money) into the bond market, stock valuations should do exactly what they are doing as investors chase yield.

Maybe if we continue to deny that we have a situation, it will go away.

So what is the answer? Refuse to play and begrudge everyone else's winnings? Isn't "right" always on the winning side?

I suppose those of us who are always "wrong" can use our righteous indignation to fund our retirements... and hope that those who are right -- albeit for the wrong reasons -- eventually get theirs.