Archive for the ‘bubble’ tag
A Bubble Deflated…
does not re-inflate. At least according to Charles Hugh Smith:
It is simply a truism that bubbles never reflate, ever. Tulip bulb valuations did not rise to stratospheric heights after the Tulip Craze popped, and the Nasdaq dot-com bubble did not reinflate, either, for the very good reason that bubbles are never based on rational valuations–they [...]
Krugman and the Economy of Hope
I’m reading Michael Lewis’ compilation, Panic: The Story of Modern Financial Insanity, and just came across this excellent article by Paul Krugman in Fortune from September 7th, 1998.
What turned a bad financial situation into a catastrophe was the way a loss of confidence turned into self-reinforcing panic … Let’s quote from the June report of [...]
