I always value the posts where the proper comparison with previous economic cycles is made. Amazingly, people (including me) have such a short memory that they have hard time reusing the past experience.

The must-read post at CR gives such a lesson. The post is better summarized by one of the readers, kaan:

As CR is indicating the cardinal sin committed by many smart folks comparing flow liabilities with stock assets. Asset price are determined at the margin. What this implies is most assets are not traded at prevailing prices at all.

If in a city a single house is bought by a fool at 20 percent premium every other house owner feels 20 percent richer but they are yet to be sold.Compare this with the price of oil. Each day every single barrel of the 85 million barrels is traded. Which price is more robust?

Therein lies the problem of liquidity driven manias such as current one.