bubble--- A legend has it there are good bubbles.
These are not black swan-like, and more like a green ray,
mostly self-sustainable: the shipmates in both
the short and the long run from all around.
By solving some locally and globally problems somewhat simultaneously the pathway out of the storm can be
found, positive information through the clouds, sending the economy into escape
velocity, and finally landing beyond a barrier at a better time-place where it is a
sunshiny day everywhere. People may not be aware there was a good bubble at all.
On the other hand, in economics and finance a bubble could mean toil and
trouble dead ahead as it could be“popped” in a bad way, instead of using it as a
hot air balloon or a green ray to land outside the storm. The signals indicating a bubble is being blown up may not be
easily detectable at first. A flurry of purchases surrounding a particular asset
class occurs, usually with borrowed money, thereby raising prices as animal spirits remain high. People become afraid
they are going to lose out if they don’t jump in. The trouble is that it may
only take a few credible people with access to large amounts of capital, and/or
"tender" of a haute sort, advertising budgets and financial instruments to pop the bubble. Those
with long exposure to the underlying assets (like real estate) may find themselves in
severe financial hardship. Naked shorting and high interconnectivity between
the entire global crew may further the spectacle. A rampage of liquidation and deleveraging may follow and a terrible economic
storm could hit everyone on the planet except those about to benefit from the
demise. Please see South Sea Bubble, the liquidity trap and the Great Recession.
See wormhole for a passage back through to another
time and another bubble...
.
[1] Thank you Dr.
These are not black swan-like, and more like a green ray,
mostly self-sustainable: the shipmates in both
the short and the long run from all around.
By solving some locally and globally problems somewhat simultaneously the pathway out of the storm can be
found, positive information through the clouds, sending the economy into escape
velocity, and finally landing beyond a barrier at a better time-place where it is a
sunshiny day everywhere. People may not be aware there was a good bubble at all.
On the other hand, in economics and finance a bubble could mean toil and
trouble dead ahead as it could be“popped” in a bad way, instead of using it as a
hot air balloon or a green ray to land outside the storm. The signals indicating a bubble is being blown up may not be
easily detectable at first. A flurry of purchases surrounding a particular asset
class occurs, usually with borrowed money, thereby raising prices as animal spirits remain high. People become afraid
they are going to lose out if they don’t jump in. The trouble is that it may
only take a few credible people with access to large amounts of capital, and/or
"tender" of a haute sort, advertising budgets and financial instruments to pop the bubble. Those
with long exposure to the underlying assets (like real estate) may find themselves in
severe financial hardship. Naked shorting and high interconnectivity between
the entire global crew may further the spectacle. A rampage of liquidation and deleveraging may follow and a terrible economic
storm could hit everyone on the planet except those about to benefit from the
demise. Please see South Sea Bubble, the liquidity trap and the Great Recession.
See wormhole for a passage back through to another
time and another bubble...
.
[1] Thank you Dr.