It was less than a decade ago that a massive housing bubble, driven equally by greedy bankers and speculators, set the stage for what was to become the worst financial crisis in history. How quickly they forget?
Not only is the sort of easy money that fueled the bubble making a comeback…
…so is the rampant speculation that drove prices to the moon.
Has nobody explained to them the concept of an “echo bubble”? From Investopedia:
A post-bubble rally that becomes another, smaller bubble. The echo bubble usually occurs in the sector in which the preceding bubble was most prominent, but the echo is less dramatic.
I guess they must believe, “this time is different.” And once again I’ve got to tip my hat to Mr. Vonnegut. For it’s not only those who, ‘can’t remember the past that are condemned to repeat it,’ as Santayana famously suggested. Certainly, who can have already forgotten 2008? Sadly, it seems it’s just human nature to fall prey to the same dangerous instincts time and again.