Instead, I want to follow a different path and ask are there factors that contribute to asset price booms, that can be identified and eliminated or, at least, reduced? I have in mind various incentives, informational deficiencies and dubious practices which occur during the boom, but which we always seem to discover well after the bust has occurred.
We realise then that these practices allowed distorted views of the profitability of businesses and investment strategies to remain in place long after they should have been corrected. Each boom is different and the lessons we learn after the bust has occurred are also different.