An ode to sanity

[veritas]

Do economic bubbles form on behalf of negligence (or greed) by the powers that be, in not valuing assents as they depreciate on the balance sheet? They do not honor the intrinsic value of the asset? The fabric or caution tape, which for most of us separates risk and reward is easily broken by these individuals, solely because they own the government, and thus 'rewarded' for their inept perception of who lives on this planet.
Any one get what I'm saying? And in doing so, down the road, prices raise, standard of living goes down, unemployment raises, new laws curbing "freedom" are set in place, and most of us loose out. Among other things.

[phk]

They result from irrational exuberance which can sometimes be unintentionally [or maybe intentionally] induced by the government (like low rates) and than amplified by the media ("new economy").

[cannonia]

People with idle money will look for high returns.  Real estate was trumpeted as a safe investment after the dot-com bubble burst.  People fleeing the real estate market will look for some other area to park their money.  Demand is the ultimate fuel for bubbles.

[memphis]

People are no different.

[opebo]

Inherent flaw of markets, and the market system is a very poorly functioning one.