4 ms·
You are running into the fallacy that you can know what is a bubble and what is not, before the fact.
by bayesian_horse 10y ago
You are running into the fallacy that you can know what is a bubble and what is not, before the fact.
- danieltillett 10y agoNot at all. We know in hindsight that the pre-2008 run up in prices was a bubble, but at the time this was debatable. I am just trying to explain to the OP that prices are set by supply and demand, but that demand may not always be rational. Personally I do think it is a good idea to try and avoid speculative bubbles in assets and the best way to do this is via taxation.