Intellectual Bubbles

Just a wonderful post over at the blog One Cosmos today:

We all know that there are economic bubbles that inevitably burst and punish investors for their irrational exuberance and willing suspension of disbelief about the laws of economics.

To cite the most recent dramatic example, the climate change industry has been revealed to be a classic intellectual bubble. As with economic bubbles, its worth as a scientific theory became absurdly overvalued, to the point that more and more outrageous claims were required to prop it up. People were willing to pay the price, so long as the illusion of value was maintained. But since the bubble has burst, intellectuals who invested heavily in it are left holding penny stocks that even then no one will buy, for they are essentially worthless.

The whole thing is very much worth your time, but I must include the ending:

Thus, just as investors should have been skeptical of the extraordinary financial claims of a Bernie Madoff, people should have been far more skeptical of the extraordinary scientific claims of the warmists before investing in the theory. It might have passed as a decent intellectual hedge fund, but certainly not one’s core investment.

President Obama is another example of a classic bubble. Why did otherwise sane people invest so much in this cipher? Indeed, why did they ignore all of the evidence that he was absurdly overvalued?

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