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And he continued to flex his forecasting muscles, looking for certain "fingerprints" in market prices that help him identify bubbles. While there's lots of comp
by noelchurchill 17y ago
And he continued to flex his forecasting muscles, looking for certain "fingerprints" in market prices that help him identify bubbles. While there's lots of complex math behind it, one key pattern is essentially this: periods of unsustainable growth, in which the growth rate is itself accelerating, punctuated by waves of panicky selling. Key elements are the "positive feedback" generated by optimistic investors pushing the price ever higher into bubble territory even as more pessimistic investors produce waves of selling. In the midst of this tug of war, there's an accelerated development of the bubble.
The number of dollars being created by the fed?