In 1996 Alan Greenspan uttered the words “irrational exuberance“ to describe the speculative fervor of the 1990’s economy. Assets in the dot.com days were over priced and value was driven by talk rather then demonstrated performance. We learned some lessons and forgot others from that time.
I am deeply concerned that state and local governments are being flooded by irrational exuberance of a different industry, the Shale play. Let me be clear, I think that having a U.S. sourced energy supply can prove to be a great catalyst for supporting our pursuit of energy independence. The concerns however come from the lack of honest planning and conversation about how the economic opportunity of Shale fits into any coordinated economic and business growth strategy for the state.
To read the full, original article click on this link: Irrational Exuberance and the Need for a Balanced Portfolio - Fourth Economy
Author:Rich Overmoyer
