Because in a conservative utopia, bubbles do not exist. The free market must be perfect at pricing. Government intervention or regulation is always wrong. Blah blah blah.
You seem to have missed the word "generally", even though you quoted it, since that word means "it isn't a perfect description; there are exceptions".
Conservatives never learn. You might as well have said a couple of years ago:
"If the bulls have the upper hand, it's generally because of supply and demand favor higher prices. The fundamentals of the physical supply of housing drive the psychology around housing prices rather than vice versa."
Because in a conservative utopia, bubbles do not exist. The free market must be perfect at pricing. Government intervention or regulation is always wrong. Blah blah blah.
And no. There is no evidence that will convince conservatives otherwise. This is a matter of faith, not fact. You can have not one bubble, not two bubbles, but one hundred bubbles, and conservatives would be pretending that psychology in markets does not matter.
I will tell you what is always wrong. Conservatives and their reflexive hate American government first ideology.
McCain and Obama both agree that speculation in the oil markets is a problem. McCain and Obama are both right. Theory first conservatives with their head in the sand are wrong.