Back to Basics: Have Investors Learned Lessons from the Downturn in Real Estate Markets
It’s always the same. For whatever reason, usually to do with human activity and greed and avarice, a bubble forms. As more people find out about what can always only be a false promise of lasting wealth emanating from the bubble and try to get in, the bubble stretches and gets bigger and bigger. Eventually, the bubble can stand it no longer and bursts under the pressure, spilling contents asunder. It is not only the bubble that is deflated; the expectations of the occupants of the bubble, based on that false promise of wealth, are also deflated.