This
"As long as we keep pumping out good IPOs, we’ll be fine."
And this
"Fundamentally, bubbles need the mechanics of a ponzi scheme in order to exist. "
Translation - keep building crap because there is still enough suckers for this Ponzi to work for a while.
A bubble can occur when speculators invest with the belief that a sucker will come along after them to buy the stock at a higher price.
This seems more of a requirement for ANY market - not just a bubble. Aside from fixed-income or high-dividend paying stocks, When would an investor ever buy a stock without the belief that someone else will eventually buy it for a higher price?
Comments
This "As long as we keep pumping out good IPOs, we’ll be fine." And this "Fundamentally, bubbles need the mechanics of a ponzi scheme in order to exist. "
Translation - keep building crap because there is still enough suckers for this Ponzi to work for a while.
This seems more of a requirement for ANY market - not just a bubble. Aside from fixed-income or high-dividend paying stocks, When would an investor ever buy a stock without the belief that someone else will eventually buy it for a higher price?
Dividends.