Do Our Central Planners Really Believe This Will End Well?

An economic bubble is essentially an economic activity that cannot sustain itself without a continuous influx of new money and credit to bid away real resources from self-funding endeavors. Financial bubbles are obviously closely related as financial assets are derivatives of underlying real production of goods and services. For example, an Apple stock is a derivative of the economic good emanating from peoples use of their cell phones. If the value placed on the services rendered from their product is high, the financial asset should reflect this through a high share price.

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