Biotech Values

[zipjet]

This time is different

First, you are ignoring a key part of history as represented by the steepness of the YC. It is at least as important as the average level. Bonds would soar (not crash) if the YC slope returned to historic norms.

This time is different

I read it, have you? Great read.

It would help you understand that a financial crisis is different with a global survey. (1800-2000's)

http://www.amazon.com/This-Time-Different-Centuries-Financial/dp/0691142165

Or you might read Minsky to learn that the impact on corporate earnings and valuations depend on government deficits:

http://www.amazon.com/s/ref=nb_sb_ss_i_1_14?url=search-alias%3Dstripbooks&field-keywords=stabilizing+an+unstable+economy+hyman+minsky&sprefix=stabilizing+an%2Cstripbooks%2C274

an assertion that has accompanied every financial bubble in recorded history.

Really? I have read the definitive work on bubbles by Kindleberger:

http://www.amazon.com/Manias-Panics-Crashes-History-Financial/dp/0230365353/ref=sr_1_1?s=books&ie=UTF8&qid=1341960825&sr=1-1&keywords=manias+panics+and+crashes+a+history+of+financial+crises+by+charles+p.+kindleberger+2011

Have you? Tedious read but really sets the scene from 1618-1990.