Bubbles

The Trouble With Bubbles

Authored by David Robertson via RealInvestmentAdvice.com, During the fourth quarter, the economy continued to recover but remained well below pre-pandemic activity levels. Simultaneously, the political environment became even more fraught as challenges to the presidential election confirmed the worst fears of political divisiveness. Despite these challenges, the fourth quarter continued with a strong performance as…

Why Asset Bubbles Involve So Much More Than Just Rising Prices

Authored by Frank Shostak via The Mises Institute, According to the Financial Times from October 18, 2020, senior Federal Reserve officials are calling for tougher financial regulation to prevent the US central bank’s low interest rate policies from giving rise to excessive risk taking and asset bubbles in the markets. Eric Rosengren, president of the Federal Reserve Bank…