INTRODUCTION
Hi,
Welcome to the Bubble Blog. The purpose of this blog is to share insight, analysis, data, and commentary about investment bubbles in order to make better business decisions during these complex market dynamics.
Bubbles occur all the time. They are not aberrations to normal economic functioning. They are normal. Since the 1960s there has hardly been a year where a bubble has not occurred somewhere. Some are big, some are small. They are the driving force of innovation, and change - the fuel that finances creative destruction.
The really big ones do so at terrific cost and risk. The costs are faced primarily by those who are left hodling the bag when bubbles crash. The risks can affect the entire global economy. The last 15 years has seen bubbles that have rocked the world economy (Asian Miracle turned Asian Economic Crisis, Russian Debt Crisis, Long-Term Capital Management, Argentina, the Internet), each time nearly bringing the globe to an economic crisis.
While bubbles are more frequent than we typically realize, they may also be accelerating due to the speed of global capital movements and the pace off innovation.
This blog is dedicated to improving our insight during these period of sweaping transformation so that we can manage them more effectively.
Welcome to the Bubble Blog. The purpose of this blog is to share insight, analysis, data, and commentary about investment bubbles in order to make better business decisions during these complex market dynamics.
Bubbles occur all the time. They are not aberrations to normal economic functioning. They are normal. Since the 1960s there has hardly been a year where a bubble has not occurred somewhere. Some are big, some are small. They are the driving force of innovation, and change - the fuel that finances creative destruction.
The really big ones do so at terrific cost and risk. The costs are faced primarily by those who are left hodling the bag when bubbles crash. The risks can affect the entire global economy. The last 15 years has seen bubbles that have rocked the world economy (Asian Miracle turned Asian Economic Crisis, Russian Debt Crisis, Long-Term Capital Management, Argentina, the Internet), each time nearly bringing the globe to an economic crisis.
While bubbles are more frequent than we typically realize, they may also be accelerating due to the speed of global capital movements and the pace off innovation.
This blog is dedicated to improving our insight during these period of sweaping transformation so that we can manage them more effectively.
posted by carlhaacke at 10:36 AM
1 Comments:
Thanks. This is an early phase.
I China is a bubble because investors and businesses are making the same kinds of mistakes that they do during the many bubbles of the past. Most simply-They are oversaturating market opportunities, they are investing in companies that should never exist, and nearly everything is overvalued.
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