Bubbles are an important cause of economic recessions according to the popular way of thinking. The main question posed by experts is how one knows when a bubble is forming. It is held that if the central bankers knew the answer to this question they might be able to prevent bubble formations and thus prevent recessions.
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Dow up 125 points yesterday, to a new all-time record.
Why? What’s behind it? The economy is not so hot. Why the red-hot stock market?
China is back in the news. A new report from CBS’s “60 Minutes” documents the extent of the ghost cities in China — miles and miles of empty highway, office towers, apartments and malls. Analysts are talking about the biggest real estate bubble in history!
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