Do you think the Nobel Prize winning economist that shape government policy grasp this point? Of course not. Consider that when you read the following from an MSNBC article related to the fears of market crash in China:
But while investors expect the market — up more than 80 percent this year — to keep rising, Chinese leaders are alarmed. They worry that too much of the $1 trillion lending binge by state banks that paid for China's nascent revival was diverted into stocks and real estate, raising the danger of a boom and bust cycle and higher inflation less than two years after an earlier stock market bubble burst.
By changing a few of the details, this article could have been written in 2006, 2001, 1986, ...1929,