| Asset bubbles make theorists crazy, because they seem to be obvious, at least in hindsight, and yet constantly recur. Some academic economists argue that price and value are identical, so that by definition, nothing is ever overpriced.
Others now undertake neurological studies of trading to show that people seem to pay attention to what others are doing, in part, confirming the idea that many in the market plan to make money, not by spotting better values in assets, but by making it off the so-called “greater-fool”. That is, recognizing a bubble, but riding it up and getting out when it bursts, leaving the “greater fool” to take the losses...............................................Full Article: Source
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