Five Years ago the Dow closed at 14,164. The highest it has ever closed. I remember that time.It was so unreal. I had been waiting for real estate bust and the inevitable disaster since about 2003/2004.Then, the bubble burst, subprime and liquidity problems were starting to appear, and what does the stock market do? It goes to a new high.By this time in 2007, I was almost coming around to the conclusion that nothing truly bad would happen to the economy.After all, people had now had their noses rubbed into the fact that there had been a massive real estate bubble together with a huge amount of fraudulent mortgage credit.I was incredibly puzzled that "smart money" didn't react to this with panic selling.Surely, I thought, economists and professional investors can't be THAT stupid? Right?The better explanation was surely that I was wrong in assuming that a big economic crisis was coming.Those were my thoughts five years ago.