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<p>[QUOTE=&quot;medoraman, post: 1502090, member: 26302&quot;]I agree that bubbles aren&#039;t as common as people are saying nowadays. Even the tulip bulb craze wasn&#039;t a bubble if demand charts would have continued as they were perceived in the day. </p><p><br /></p><p>Maybe I have been away from Econ too long, but what would you call ill-conceived demand forecasts that lead to exaggerated pricing? Let&#039;s use the tulip bulb frenzy. It wasn&#039;t a bubble since if you took potential production from a single bulb out 20 years, and factored in the exploding demand growth, the prices paid per bulb in holland at the time was actually rational. The error was to take current demand growth and extrapolate it forever. While not a &quot;bubble&quot;, this error is what I am seeing today being made in all kinds of assets, like farmland, PM, and the like. The reason I am bearish on farmland at these prices is everyone is forecasting out cheap money, low dollar, relatively low inputs and taxes, and lack of serious foreign competition FOREVER in their price calculations.[/QUOTE]</p><p><br /></p>

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