Like the Great Tulip Mania in Holland in the 1600's and the dot.com mania of early 2000, markets have repeatedly disconnected from reality,

The Fed certainly recognizes the importance that the markets are placing on the housing market and could well use it as a means of sending strong signals.

Spending on equipment was the strongest since the last irrational exuberance of the dot.com boom in early 200.

You've got to take into account the studies were done before 9/11, before the dot-com industry went bust. There are fewer employees now in the U.S. 36 corridor than 2001, so there are a whole host of reasons to consider.

Bulls don't read. Bears read financial history. As markets fall to bits, the bears dust off the Dutch tulip mania of 1637, the Banque Royale of 1719-20, the railway speculation of the 1840s, the great crash of 1929.

The Chinese devaluation would be devastating to the equity markets, and it would be good for bonds, ... But that is not a credible fear right now. The inflation that would come from devaluation would cause social instability.