I’d say the real problem is trying to figure out what’s a bubble in the first place. It’s all well and good to declare that people are now paying more for something than it’s worth, but who plays God and decides exactly what something’s worth?
Bubbles are real (and in fact have been generated in laboratory conditions - it seems part of the human psyche), but what defines a bubble is the sudden collapse, by which point its already too late.
And even then, collapse isn’t enough by itself. Was oil at $100 a bubble?
I’m in favour of taking gentle steps that try and diffuse what we think might be bubbles. But rhetoric aside (of course we’ll all claim “this is a bubble”), anyone who truly cannot recognize the inherent uncertainty of declaring a bubble is fairly deep in Dunning-Kruger territory and ripe to lose their shirt, or, if dictating policy, making very damaging decisions.
