For instance, the dot-com bubble eventually reached a point where day-trading retail investors became a dominant force, creating incentives for venture capitalists, underwriters and fund managers to jump on the bandwagon, hoping to hop off before the bubble burst.
Where Andy Warhol mused everyone will be famous for 15 minutes and that brave new world where animated TV family The Jetsons fly around in domed bubble cars to get from point A to point B.
But it might also mark the point at which the bubble in the market for Treasury securities bursts.
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Credit for this (or blame, depending on your point of view) goes to the Bubble Economy of the late 1980s, when greater Tokyo was worth more than the entire state of California.
Although at that point the idea Treasuries were in a bubble saw little speculation, the perceived pessimism here probably began to surface thanks to an improving economic situation and increasing likelihood the Fed would eventually curb its enthusiasm for stimulus measures.
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And foreclosure filings are at their lowest point in the five years since the housing bubble burst and left millions of responsible families holding the bag.
The bursting of the tech bubble and the minor recession of 2001 knocked about a point off the peak rate of 67.3% in April 2000, but even after the Great Recession ended in June 2009 the rate was 65.7%.
At what point does a healthy dose of reflation become another bubble?
The year 2000 may have seen the dot-com bubble reach the limits of its inflation, but at that point the Internet marketing industry was really only getting started.
But that building costs point does explain why what would have been a bubble height in 1930 was, by 1980 say, possibly too short a height to be economic.
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The solar stocks "mini-bubble", the meteoric rise of the clean energy sector in 2007 and the backing from Silicon Valley venture capitalists have led some to compare the clean energy sector to the dot com bubble of the late 1990s, but Nasdeo is quick to point out the differences.
The point being that generally, a catalyst is needed to pop a bubble.
So, my take is that the bubble of investor psychology could still become deflated whether there's a quarter-point reduction in the fed funds rate or not.
At the peak of the housing bubble in 2005, the multiple climbed to 4.73, but even in 2010, ostensibly a point of historic affordability, it was still 3.5.
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However, an interesting point made that the rising heights of skyscrapers being newly built indicates the existence of a credit bubble and thus the recession that will inevitably follow.
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At the peak of the housing bubble in 2007, the average interest rates it charged on mortgages were only about three-quarters of a percentage point higher than the price it paid to borrow.
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