- Bubbles are an inefficient way to allocate capital since they lead to “excess” investment.
- There has always been lots of chicanery in bubbles.
- Lots of people get hurt in bubbles.
Historically, the results of bubbles have usually been more empowerment for more people. Historically, bubbles have provided an explosion of funds which blasted away the entrenchments of an old oligarchy not only to the benefit of entrepreneurs but also to the benefit of consumers in general.If you believe in Joseph Schumpeter, that "Capitalism is the process of creative destruction." then you might concur with Tom. And, from an investment perspective, John Maynard Keynes so wisely once said "There is nothing so dangerous as the pursuit of a rational investment policy in an irrational world."
Let me think about this. One thing I do know is that Evslin is now definitely on my blog roll.