3 ms·
what major institution failed in the early stages of [1] the japan asset bubble or [2] the dot com bubble? Or farther back, the 1840s railroad mania or the sout
by sl8r 5y ago
what major institution failed in the early stages of [1] the japan asset bubble or [2] the dot com bubble? Or farther back, the 1840s railroad mania or the south sea bubble?
credit bubbles often pop when some institution can't cover its obligations, but asset bubbles don't seem to need such a failure — and can deflate on their own.
- anm89 5y agoNo one ever could have predicted those things! Except for the large number of documented cases of people and institutions who did...
- sl8r 5y agoI'm not saying that crises aren't predictable — I'm pointing out that institutional failure isn't always a leading indicator (as in OP's argument).
- anm89 5y agosorry if it wasn't clear, I completely agree with you. I just feel like people make that argument in response to what you are saying and it's not a very good one
- France_is_bacon 5y ago[dead]