People said it at the height of the tech boom. They believed the “New Economy” and tech stock valuations were no longer subject to historic norms and economic cycles. Predictions of Dow 30,000 were made.
People said it again at the height of the real estate boom. They believed that home prices were no longer subject to silly things like “intrinsic value” and what people could actually “afford.”
Well I’m hearing it again now. People are saying that this economic downturn, accompanied by twin bear markets in real estate and the stock market is different this time. This time they won’t find a bottom. This time we’re doomed to perpetual doom.
They say, ‘they don’t ring a bell at the top,’ or at the bottom, for that matter. Well don’t tell my melon because it’s ringing pretty damn loud right about now.