The Importance of Speculation in Bubbles

The New York Fed and Ben Bernanke were using the same arguments to say that categorically, there was no bubble in the US. What I think joiners analysis misses entirely is a question of speculation. For most people, bubbles go hand in hand with crashes. And the bubbles followed by a crash because as soon as expectations flip like a pancake it's incentive for speculators to sell. That drives prices down and the correction bleeds into a crash.