However deep or long this year-old credit crunch proves to be, the financial system looks doomed to repeat the crisis in some form unless regulators look seriously at preventing banks and investors herding into booms and busts.

From the archive:

That the Internet and housing hyperinflations transpired within a period of ten years, each creating trillions of dollars in fake wealth, is, I believe, only the beginning. There will and must be many more such booms, for without them the economy of the United States can no longer function. The bubble cycle has replaced the business cycle.