Questions tagged [economic-bubble]

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Was the financial crash of 2008 caused by top graduates of the American Ivy Leagues working at wall street banks?

From this article by Lisandro 'Leloy' Claudio, a Philippine/a Filipino professor of history, politics, South & Southeast Asian Studies (and not necessarily of finance, economics, mathematics or ...
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Why would China's housing be in a bubble?

This popular video on YouTube, "China's Reckoning: Housing Crisis", suggests that the housing market in China is in a bubble, because the vacancy rate is very high. However, it also ...
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Is a financial bubble harmless if rich people choose to hoard their wealth?

The real question is longer than the title suggests. I was reading about Principles For Navigating Big Debt Crisis by Ray Dalio, and he mentioned that an economic bubble happens when too much money ...
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2 votes
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Empirical means of discerning "economy" and "bubble"

In the news lately and in previous administrations, one of the most popular sound bytes I've heard was: "so and so is not growing the economy, he's growing the bubble." As with much sensationalism in ...
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2 votes
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True or False: During the Japan Bubble, one sky scraper in Tokyo was worth more than the entire state of california?

I have heard a rather outlandish claim that during the peak of the real estate bubble in Japan (I think that was in the 70's and 80's), one sky scraper in Tokyo was worth more than the entire state of ...
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6 votes
3 answers
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Are cryptocurrencies a ponzi scheme or a bubble?

Several users in this forum have addressed bitcoin and other cryptocurrencies as ponzi schemes. Bitcoins have several uses which could legitimate its value as a currency, but also have received ...
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What activity or event(s) marks the point at which an economic "bubble" burst?

What general activity or event(s) mark the time at which an economic "bubble" bursts? e.g. the dot-com bubble, etc. Would it be considered to have "burst" when intrinsic value is less than price? ...
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Does it affect locals negatively when a new company moves in?

I want to specifically discuss Dallas,TX if possible but a broader answer is still appreciated. Ever since Toyota and State Farm moved to Dallas, among others, the housing prices have sky rocketed to ...
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A law against selling any house cheaper than it was bought for, what consequences would that have?

I'm looking for a more general and principled answer and use Scandinavia today only as a sketchy example of the kind of scenario I'm asking about. I live in Scandinavia where house prices has had an ...
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3 votes
5 answers
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Why recent crises all started with a housing bubble?

I was writing some notes about the last economic and financial crisis and I noticed that all these recent crisis start with a housing bubble. Beside the 2007-08 US's one, also Japanese crisis in the ...
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Did a similar property boom take place in another country or throughout history like we have seen in London? If so how did it effect the economy?

The London property market has seen a sharp increase in the average house price. If we go back to the 70's the average UK and average London price were almost the same, however since than the gap has ...
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because bitcoins do not generate earnings, then (it is a ponzi scheme)?

What does the author mean with: Since Bitcoins do not generate any actual earnings, they must appreciate in value to ensure that people are willing to hold them. Why must they appreciate in ...
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Ultralow interest rates and bubbles

We've had ultralow interest rates for a very long time now (I think unprecedented in history). Is it possible that this extremely loose monetary policy is creating bubbles? Bill Gross has put out a ...
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Housing bubble and financial crisis [closed]

Can anybody explain me easily what is housing bubble and how it cause financial crisis?
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What is an economic bubble?

How do one know whether an appreciation in the price of an asset is a bubble or not? For example, during the 2007-2008 crisis, there was a housing bubble, which is only mainly agreed upon when the ...
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