What Bubble?

Dear Client: "One of the most frequently asked questions surrounding the craft brewing industry these days is: 'are we in a bubble, and if so, when will it pop?'" starts an article by Brewers Association economist Bart Watson. The answer from his camp is, of course, no, but his arguments are much more pointed than most. First he defines the concept of a bubble, "a period of overinvestment where asset prices aren't aligned with reality." In that context he then