[quote=pri_dk]The fact that there once was a bubble in the price of one type of asset doesn’t tell us anything about whether some another asset is in a bubble today.
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Nor did I suggest as such. My point was that financial market prices shouldn’t ever be used in an attempt to “prove” any macroeconomic statement, because financial markets are often wrong. I mentioned housing in 2005 because at the time, many people were citing rising home prices as proof of housing’s great fundamentals.
As for people paying “a lot” for government bonds: rates are at multi-generational lows, so it really isn’t debatable that people are, relatively speaking, paying a lot.
