Make no mistake - this stock market has a bubble mentality
and like all bubbles, this one is going to burst.
Leader of the Welsh Conservatives, Andrew RT Davies, has vowed to create the new top job saying the "Cardiff Bay bubble mentality
needs to burst".
"The bubble mentality
, where every good idea gets funding, is over," Elias Zerhouni, research and development chief at French drug giant Sanofi SA, told The Wall Street Journal last spring.
"For the past 15 years, home price changes and sales volumes have either been boosted by a bubble mentality
or crushed by crash psychology."
A rush to real estate combined with Baby Boomer liquidity, distrust of the stock market and a bubble mentality
to drove that mania.
The bubble mentality
justified highly leveraged financing, with the presumption that a galloping economy would keep cash flows robust and a surging market would ensure easy refinancing.
With arithmetic like this, it is easy to see why investors could develop irrational exuberance, feeding a "bubble mentality
." However, sustained years of wealth growth from home ownership have occurred.