The Anecdote to Irrational ExuberanceSubmitted by Smaulgld.com on Wed, 07/24/2013 - 11:15
“But how do we know when irrational exuberance has unduly escalated asset values, which then become subject to unexpected and prolonged contractions as they have in Japan over the past decade?” Alan Greenspan December 1996
Alan Greenspan thus noted the difficulty in trying to determine when market activity boosts asset values to irrational unsustainable levels.
Indeed it is a tough task while the party is in full swing and with all the cheer leading going to identify harmful economic bubbles.
The proper anecdote to irrational exuberance and the best way to analyze market actions is to be