Blogger Eddy Elfenbein over at Crossing Wall Street takes a trip down memory lane today-back to June 20th, 2003. Hat tip to Mr. Elfenbein...
(From Mr. Krugman's June 20, 2003 New York Times column, "Still Blowing Bubbles")
The big rise in the stock market is definitely telling us something. Bulls think it says the economy is about to take off. But I think it's a sign that America is still blowing bubbles — that a three-year bear market and the biggest corporate scandals in history haven't cured investors of irrational exuberance yet.
In short, the current surge in stocks looks like another bubble, one that will eventually burst.