Regulators cannot avoid bubbles. No matter how many layers of supervision politicians impose. Particularly because of the cozy relationships within the financial community. Plus,you have continual, irrational optimism and the other extreme, pessimism, which occur in chronic cycles.
Furthermore, the volatility of ensuing psychology affects earnings estimates and market moods and sentiments. It can’t 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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