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Politics : Sioux Nation -- Ignore unavailable to you. Want to Upgrade?

To: stockman_scott who wrote (18884)	5/26/2005 2:22:15 AM
From: CalculatedRisk	Read Replies (2) \| Respond to of 361252

I just read some of it. He misuses the term "bubble". An asset bubble only occurs with significant speculation - just because something might seem overpriced (like oil in his example) that is not a bubble without speculation. Maybe there is speculation in oil from hedge funds, but I think the price of oil can be explained with simple supply and demand. The idea of another bubble after housing is very possible. I would think that a slowdown in housing would impact the entire economy and lead to lower stock prices. But Dent's argument (that I've heard before) is that the investment money has to go somewhere ... and stocks are the most likely candidate. Maybe. I will think about it.