[eghri]

Defining the "right thing" to do is the crux of the issue. If it was easy, we wouldn't need the stock market, banks, VC funds, or any of these things because we could just have our committee of experts make the optimal investments. As people on this site should know, sometimes the best long term decisions seem like wild long-shots at the time (like investing in a start-up).

It might be easier to define the "wrong thing" to do, but even that is usually short for the "wrong thing to do yesterday". Most people don't go and make the exact same mistake again unless they believe there is a convincing reason why This Time Is Different™.

Common sense "wrong things" also bring tradeoffs or don't have clear policy mechanisms. Even if we all agreed the stock market was overinflated, how can we deflate it without restricting valid investment and hurting the broader economy?