Tag Archives: asset bubbles

Bubble trouble: all information is not equal

This post is partly prompted by this comment and this paper (pdf) (via) on the US housing price bubbles and busts and (greatly) extends this comment by myself. It is also a response to the work of mathematician-turned-historian Andrew Odlyzko. In a previous post, I argued that easy monetary policy was not to blame for the asset booms […]

Bubble trouble: about asset booms and busts

Assets are items that produce income or retain value across time periods. Gold is a pure store-of-value asset, as it produces no income. Bonds are pure income assets, as they have no value apart from the income they produce–they are best thought of as a congealed money stream, their value being set by that money […]

Going for gold: perils of entering the goldzone

Who would want the global monetary system to be at the mercy of the Bank of China?  Not conservative, free market types in the United States and elsewhere, one guesses. Actually, it turns out lots of them do; all the people who support some sort of return to the gold standard, who think that the […]

Corrupting risk on top of the surplus pyramid

In a real sense, human history starts with the creation of a social surplus, a surplus beyond simple subsistence. Such a surplus could be used for–indeed, was required to–build more complex societies. This included the literal building of the monumental architecture, the most striking creations from the existence of such surpluses. More food, more babies Merely increasing production does […]