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I don't think you are describing a bubble.

I agree, but the problem is that part of our problem now is also usually defined as irrational exuberance, and THAT's the part on which I "sorta disagree." People were acting rationally based upon too short a time frame (10-15 years), and for too many people that's long-term. Actually, I see I'm more discussing this with myself than you, so I'll quit.

Next, we'll see the unlearning process of this "lesson." In the summer of 1987, like now, I got nervous about stocks and sold. I felt like a "god" in October, got scared again in 1989, but stayed out too long and eventually lost more by staying on the sidelines than if I'd just stayed the course. It's how I learned about asset allocation and market timing, but it was an expensive lesson.

I wonder what the lesson will be here for the next generation from this housing/credit bubble? I'm sure I'll learn something here. Thanks!

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