Here are the characteristics of a bubble:

  1. Fads, trends or new developments emerge encouraging new investment.
  2. Rising share prices encourage optimism and expectations of yet higher prices.
  3. Deregulation and liberalization create new opportunities, particularly in emerging markets.
  4. Buying sprees are fueled by plentiful credit supply.
  5. More equity issues are made to satisfy investor demand.
  6. New types of derivatives make an appearance and margin trading increases.
  7. Share price rises rapidly overtake bond price increases.
  8. A common interest in talking up the market is created, stretching from governments to small investors.
  9. Buoyed by strong performance, fund managers grow more bold and feel more omnipotent.
  10. News of spectacular profits draws in gullible novice share buyers in great numbers.
  11. Fund managers and professional investors try to replicate high level of gains by taking bigger and bigger risks.

Read More…


YouTube Related Videos for Tags: financial, bubbles



How to Study Stock Market Trends: Financial Investments and the History of Bubbles (2002)
A stock market bubble is a type of economic bubble taking place in stock markets when market participants drive stock prices above their value in relation to…
Tags:
Warren Buffett On Financial Bubbles-Yahoo

http://www.magicformulapro.com.

Tags:

What Are Economic Bubbles? – The dot.com Bubble (1/8)
Free learning from The Open University http://www.open.ac.uk/openlearn/society — Bubbles are when a products value continues to rise beyond its true value….
Tags:
The Crisis of Credit Visualized – HD
The Short and Simple Story of the Credit Crisis — The Full Version By Jonathan Jarvis. Crisisofcredit.com The goal of giving form to a complex situation lik…
Tags:
Peter Schiff Lecture, Financial Bubbles Explained (1/8) (ECONOMICS LECTURES)
YouLectures – for the ‘INFORMATION’ ‘MAKING’ the ‘NEWS’ This series has been uploaded following a request and information received that it was not easily ava…
Tags:
Finance Explained: Market Bubbles
As per request, here is a brief description of how bubbles can occur. Once again, this is a very basic description of an economic process so if you have anyt…
Tags:
Didier Sornette: How we can predict the next financial crisis
The 2007-2008 financial crisis, you might think, was an unpredictable one-time crash. But Didier Sornette and his Financial Crisis Observatory have plotted a…
Tags:
Didier Sornette: Using Math and Supercomputers to Predict Financial Bubbles
Oct 14 – Cris Sheridan welcomes Didier Sornette, Professor at the Swiss Federal Institute of Technology in Zurich, Switzerland. Professor Sornette explains the math behind bubbles and how…
Tags:
Overdose: The Next Financial Crisis
Overdose: The Next Financial Crisis. Award-winning youtube hit giving fresh insight into the greatest economic crisis of our age: the one still awaiting us. …
Tags:
Financial Bubbles (How banks are destroying the world economy)
Find out how the money printed by the central banks does not end up the hands of the people, but goes directly to the banks, through whom it ends up in the s…
Tags:
Every American Should Watch This… THE NEXT BUBBLE Part 1 of 3
This is the crash course series by Chris martenton… or ” chrismartensondotcom “
Tags:
Didier Sornette Diagnosing the next financial bubbles part 3

Tags:

Didier Sornette Diagnosing the next financial bubbles part 1

Tags:

Revolutionary Cycles and the History of Financial Bubbles w/Carlota Perez
Follow us @ http://twitter.com/laurenlyster http://twitter.com/coveringdelta Welcome to Capital Account. Rising food prices, called the next crisis, threaten…
Tags:
The Perilous Psychology of Financial Bubbles
nvestors justify financial bubbles all the way to the top. This perilous psychology led to massive losses after the market peaks of 2000 and 2007. Now, in 20…
Tags:
Didier Sornette Diagnosing the next financial bubbles part 2

Tags:

IFA.tv – Financial Bubbles and Speculation from 1720 – Show 38-2
IFA.com: http://ifa.com – Take the Risk Capacity Survey: http://ifarcs.com – Complete the Retirement Analyzer: http://ifa.com/ra – Call 888-643-3133 – http:/…
Tags:
Types of Economic Bubbles – The dot.com Bubble (2/8)
Free learning from The Open University http://www.open.ac.uk/openlearn/society — Intrinsic bubbles, informational bubbles, classic bubbles and fads are all…
Tags:
Didier Sornette Diagnosing the next financial bubbles part 4

Tags:

Marc Faber Massive Financial Bubble, Economic Collapse
Dollar Meltdown, Massive Financial Bubble, Economic Collapse – Marc Faber. Follow us @ Welcome to Capital Account. Another day with record lows for the US Tr…
Tags:

Map for wall street, new_york [, ]




Comments are closed.

Set your Twitter account name in your settings to use the TwitterBar Section.