Havving long been a believer in irrational exuberance this was an interesting factoid.FT Alphaville » Blog Archive » The demise of irrational exuberance. I now believe the market to be irrationally pessimistic. I just do not accept that no wealth has been created over the last 12 years. The world is a much better place than it was 12 years ago. The value of the 500 American largest companies and their capacity to create new wealth cannot have dimished that much. Now is the time to buy banking stocks
Crisis factoid du jour, via Bloomberg: Alan Greenspan can stop worrying about “irrational exuberance” in the U.S. stock market, 12 years after he warned investors that share prices were rising too fast. The S&P 500 fell below 744.38 today, its closing level on Dec. 5, 1996, the day then-Federal Reserve Chairman Greenspan used the phrase in a speech on “The Challenge of Central Banking in a Democratic Society.”
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