Costing a then - record - setting $ 1.8 billion in early 2007, the building would later become a symbol for a period
of irrational exuberance in U.S. real estate, where a belief in forever - climbing rents sent values soaring.
«Looking at recent frenzy over virtual currencies worldwide, I worry whether there is some
dose of irrational exuberance there,» Bank of Korea Governor Lee Ju - yeol said over a year - end event with reporters on Wednesday night.
Jason Kirby of Maclean's brilliantly described the Bank of Canada's use of behavioural economics to
warn of irrational exuberance in Vancouver and Toronto.
But what about another crisis, you ask — well sorry, where's the leverage, the ballooning bank balance sheets, the pervasive
feeling of irrational exuberance... we're still climbing a wall of worry!]
There is probably truth in both of those, but I do think it is important, in considering
claims of irrational exuberance, to note that the earnings price ratio - interest rate relationship is in a very difference place than it has been in past peaks.
A host of industry articles have recently raised an alarm about a possible
return of irrational exuberance in the stock market, much like the one at the end of the 1990s.
Note how ORCL's price departed markedly from either the orange - line or blue - line measures of true value in the period
of irrational exuberance of 1998 - 2000, then plunged back down in the tech bubble's crash from 2000 - 2002.
Regardless of the validity of the factors pushing Bitcoin and the stock market's value higher, cryptocurrency enthusiasts and investors should be cautious and not fall under the
spell of irrational exuberance.
Over the next two years, the Nasdaq would fall 78 %, reaching a low of 1,114 on October 9th 2002 — just 13 % below the original level of the index when Alan Greenspan
warned of irrational exuberance.