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It looks like a bubble, and in the human history every bubble has crushed; soon or later. My understanding is that each bubbles require leverage (credit, margi
by sdizdar 16y ago
It looks like a bubble, and in the human history every bubble has crushed; soon or later.
My understanding is that each bubbles require leverage (credit, margins, etc.) with imperfectly informed lenders.
You might call this as a bad investment (which I don't think - internet and mobile is finaly maturing), but it lacks definition of bubble.
- _delirium 16y agoI don't think the usual definition involves leverage, though that can certainly contribute to bubbles; a "bubble" is just any speculative run-up in asset values where they temporarily deviate greatly from intrinsic/long-run values.