The statement of public figures tells us a lot about conventional wisdom. In our views, government and regulatory bodies are "consensus" entities. That is to say, their statements have more to do with the consensus view than real hard nosed analysis that might cut across the grain. 1996. Many will recall Alan Greenspan suggesting investors were in a state of "irrational exuberance" in December. He was quickly made to regret the statement and the consensus view was that stock prices are high and going higher on the back of the new tech driven economy. Just a few short years later, we experienced the NASDAQ bubble and a crash in the price of stocks for companies in the technology sector.
Well, we might have just got another such event of equal significance.
