The problem is that there are two types of bubbles, and those that say there is no bubble are only looking at one type. The real bubble is on the other side: n

The problem is that there are two types of bubbles, and those that say there is no bubble are only looking at one type. The real bubble is on the other side: not the individuals, but the banks and funds The Federal Reserve pumps hundreds of billions of dollars every month into the economy in various ways. The traditionally safe investments (like treasuries) aren't performing well because interest rates have been suppressed for years. As a result, all this cash is being thrown at anything that has a hope of yielding a return. The bubble here is that, at least in the view of many observers, the current situation is unsustainable. At one point, something will happen (in recent days, the suggestion is that the fed may slightly trim asset purchases). Once that liquidity is sopped up, what happens? Most likely, a bunch of investors will end up suffering losses in the face of "down rounds", early stage investors will tighten in the face of concerns regarding the late stage investors, and the bubble will burst.