It&#x27;s risky to draw too many conclusions from Square. Jack Dorsey&#x27;s situation is unique; it&#x27;s hard to think of an example before (or ever again?) where a CEO decides to take on another CEO position of a struggling company weeks before an IPO. Think what you will about his capabilities but it was always going to create real drag on their IPO; if only because there wasn&#x27;t enough time to know if he can pull it off.<p>One thing that is rarely discussed is how bubbles burst. Stock markets have incredible visibility and liquidity so they&#x27;ll burst in a matter of days (minutes?) and weeks. Housing markets have strong visibility but less liquidity so they&#x27;re measured in weeks and months. Private valuations have poor visibility (&quot;show me a valuation and I&#x27;ll tell you the terms&quot;) and very poor liquidity; IPO&#x27;ing, being acquired are rare and difficult events.<p>So if there was indeed a bubble it was in the private capital markets and the only way we&#x27;d know is when those companies leave that market for another market (public market&#x2F;acquisition by company) There are so many variables but right now Square is telling us that the private markets were overinflating prices by at least 50%. That&#x27;s bubble stuff. The thing is it&#x27;ll be a slower&#x2F;gentler correction due to the above issues.