A funny thing often occurs after a mania-fueled asset bubble pops: an echo-bubble inflates a few years later, as monetary authorities and all the institutions that depend on rising asset valuations go all-in to reflate the crushed asset class. Take…
The Federal Reserve-induced Echo Housing Bubble is finally starting to roll over, and the bubble’s pop won’t be pretty. Why is the bubble finally popping now? All the factors that inflated the Echo Housing bubble are running dry. These include:…
Speculative bubbles that burst are often followed by an echo bubble, as many participants continue to believe that the crash was only a temporary setback. The U.S. housing market is experiencing a classic echo bubble. Exhibit A is the Case-Shiller…
Bubbles are followed by echo-bubbles, and the bursting of the second bubble ends the speculative cycle. If we have learned anything in the past 20 years of massive asset bubbles and equally massive declines when the bubbles finally pop, it’s…
Bubbles are followed by echo-bubbles, and the bursting of the second bubble ends the speculative cycle. If we have learned anything in the past 20 years of massive asset bubbles and equally massive declines when the bubbles finally pop, it’s…