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Financial Bubbles

Structural Stagnation, Bubbles, and the Volcker Rule

Jared Bernstein | Posted 02.09.2014 | Business
Jared Bernstein

It's pretty hard to miss the shampoo cycle -- bubble, bust, repeat -- that has characterized the last few business cycles in the American, and more recently, European and even Scandinavian economies. It's also the case that choice economists since Adam (Smith, of course) have recognized this proclivity towards financial market instability. Thus far in the current expansion that began in 2009Q3, financial markets and corporate profitability have far outpaced the rest of the economy. I'm not saying we're in another financial bubble, though no less than Robert Shiller recently raised that concern. But I'm decidedly saying that unless we enact and enforce tough financial market regulation, that's where we're headed.

Giving Thanks for Small Things: A Little Light in the Dark Corridors of Power

Jeff Faux | Posted 01.26.2014 | Politics
Jeff Faux

It should be no surprise that it has taken so long for a prominent member of the American policy elite to suggest openly to his colleagues that the core assumption upon which they have been managing the economic crisis might be dead wrong.

Whats Traders' Spit Can Tell Us About The Market

Bloomberg View | Mark Buchanan | Posted 06.11.2012 | Business

From Bloomberg View: An unusual study of traders’ spit may offer a taste of the future in how we understand what drives markets -- and why they a...

Why It's Hard To Predict Bubbles

Slate | Duncan Watts | Posted 08.24.2011 | Business

The recent sky-high IPO of LinkedIn, along with eye-popping valuations for other social networking and shopping companies, has raised concerns that we...

"Dr. Doom Says the U.S. Is Really, Really Sick"

Eric Margolis | Posted 05.25.2011 | Business
Eric Margolis

As this column keeps reporting, China has massive over-capacity in industry, producing a huge, dangerous bubble. China's property market is another giant bubble. When they pop, the globe will tremble.

Ben Bernanke 'Has No Clue About The Causes Of The Financial Crisis': John Carney

businessinsider.com | John Carney | Posted 05.25.2011 | Business

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Federal Reserve Debates A Bubble-Popping Strategy

The Huffington Post | Ryan McCarthy | Posted 05.25.2011 | Business

Amidst calls to bring greater transparency to the Federal Reserve, the central bank's leaders are torn over one key issue: can the Fed pop financial b...

Krugman: What's Missing In Financial Reform

nytimes.com | PAUL KRUGMAN | Posted 05.25.2011 | Business

Reform, in other words, probably can't prevent either bad loans or bubbles. But it can do a great deal to ensure that bubbles don't collapse the finan...

Low Interest Rates Could fuel Speculative Financial Bubble: Federal Reserve

AP | JEANNINE AVERSA | Posted 05.25.2011 | Business

WASHINGTON — The Federal Reserve doesn't expect the recovery will be strong enough to quickly drive down the jobless rate, and acknowledged its ...