4 ms·
>The market for beer bonds doesn't exist if there isn't an ever increasing ceiling on the price of the asset that bond is backing That's not correct. The marke
by zeteo 15y ago
>The market for beer bonds doesn't exist if there isn't an ever increasing ceiling on the price of the asset that bond is backing
That's not correct. The market expands as new bonds are issued. The key factor is that further credit is given, regardless of the size of each individual loan.
- aaronklein 15y agoBoth factors help increase the total size of the bubble.
- zeteo 15y agoYes, but this is about what causes the bubble. Sloppy credit is necessary and sufficient for that. Price increases are at worst an aggravating factor once the bubble is already under way.