>The problem with the bubble question is nobody seems to agree on what exactly a bubble is. A bubble is when a sequence of stupid people pay more for something

>The problem with the bubble question is nobody seems to agree on what exactly a bubble is. A bubble is when a sequence of stupid people pay more for something than it is worth, get lucky by managing to find someone stupider than them and hand it off to the bigger idiot for a profit. If this runs long enough, the original idiots tend to lose all perspective and get sucked into a loop of idiocy and hubris, which establishes crazy new value norms. The bubble bursts when it is no longer possible to find someone stupid enough to buy the overpriced object, due to it's value being so high that it is worth more money than stupid people can put their hands on. That's often a depressingly high figure. I know that silicon valley investors don't like that description but please, let's not pretend we don't know how it works.