[1] https://en.m.wikipedia.org/wiki/Economic_bubble#Identifying_...
[2] https://en.m.wikipedia.org/wiki/Japanese_asset_price_bubble
If people foresee the bubble, why do they participate in it? Why aren't the on the "short" side?
I get bubble mechanics. What I don't agree with are forecasts like, "What about asset bubbles?" Well, what about the income gap from years of sub-optimal growth happening right now? Why does an asset bubble (which have occurred throughout history, regardless of rates) trump that scenario?
The idea of damaging growth now to forestall a possible asset bubble in the future is not a good tradeoff.
From John Maynard Keynes himself, "The market can stay irrational longer than you can stay solvent.”