Wall Street will never avoid bubbles. No matter how many layers of supervision the statist politicians in Washington lay on.
Particularly because of the cozy relationships in the financial community, you have continual, irrational optimism and the other extreme, pessimism, which occur in chronic cycles.
That volatility of psychology affects earnings estimates and market moods and sentiments. It cannot be stopped by fiat. And it is responsible for booms and busts. (See the Earl J. Weinreb NewsHole® comments and @BusinesNewshole at Twitter.
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