> Basically, this theory holds that when asset prices rise — home values, stocks and so on — without a break, investors start to believe that this trend represe

> Basically, this theory holds that when asset prices rise — home values, stocks and so on — without a break, investors start to believe that this trend represents a new normal. They pile into the asset, pumping up the price even more, and seeming to confirm the idea that the trend will never end. But when the extrapolators’ money runs out, reality sets in and a crash ensues So what's new here?