Questions tagged [economic-bubble]

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29
votes
10answers
15k views

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 ...
5
votes
3answers
355 views

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 ...
5
votes
1answer
63 views

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 ...
4
votes
2answers
335 views

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 ...
4
votes
0answers
152 views

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 ...
3
votes
2answers
84 views

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 ...
3
votes
3answers
65 views

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? ...
3
votes
5answers
257 views

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 ...
2
votes
1answer
27 views

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 ...
1
vote
0answers
17 views

Can “invisible” investing by the Chinese govt. create bubbles in the stock market?

In this link, they claim that the Chinese govt. secretly pumps money into the market as soon the market crashed due to Corona Virus. How is this different, in terms of long-term impact, from ...
1
vote
0answers
41 views

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 ...
0
votes
2answers
89 views

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 ...
0
votes
2answers
53 views

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 ...
-1
votes
1answer
96 views

Housing bubble and financial crisis [closed]

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