On December 15th, 1997, Alan Greenspan used the term "irrational exuberance" to describe the rising value of stocks. At that time, the DOW stood at 6437.
Yesterday, the DOW closed at 6627, which by any measure that includes inflation, is far below 6437. So more than 12 years of "gains" have been wiped out. Most of the news has been on the banking sector losses, rising unemployment, bailing out AIG and the banks, stimulus, budget deficits, and on and on. I haven't seen a whole lot of news about what's happening to pension funds and 401k's. With all the baby boomers set to retire and their retirement funds evaporating, what are they going to do?
Perhaps it's time for a new word or phrase to describe that sinking feeling.
Rational uberance anyone?
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