Asset Bubble Quotes

How do we know when irrational exuberance has unduly escalated asset values?

The entire political class and ruling Wall Street class are zero-percent-interest zombies who talk about 'deflation' in the value of their second, third, and fourth homes. This is paper-deflation, zombie-deflation, and has nothing to do with the real economy.

The downturn following the collapse of Japan's so-called bubble economy of the 1980s was not as severe as the Great Depression.

The ultimate asset bubble is gold.

Bubbles are best identified by credit excesses, not valuation excesses. And there's no bigger credit excess than in China.

We as central bankers need not be concerned if a collapsing financial asset bubble does not threaten to impair the real economy, its production, jobs and price stability.

Wall Street got drunk and now it's got a hangover. And the question is, how long will it sober up and not try to do those fancy financial instruments?

The roots of the crisis in East Asia were in private sector decisions. The biggest problems were the misallocation of investment, most notably to speculative real estate, and risky financing, especially borrowing short-term debt on international markets.

Viewed from a distance, or through the eye of the All-Knowing CEO of the Universe, the crash of 2008 followed the usual pattern. A long-lived boom driven by cheap credit, going back as far as 1982 (though subject to interruptions in the mid-1980s and 1990s, and in 2001), came to grief because of a rise in the cost of borrowing money.

Squeeze property speculators until the pips squeak.

You cannot have an asset that goes up in price 1% every month or 1% every six months or every day without people starting to start thinking it'll do the same tomorrow, so that's why these bubbles form.

All the risky things that were happening back in ’06 and ‘07 are back again to the same level, if not more. So we are in the beginning of a credit bubble, but just the beginning.

The Nasdaq bubble and crash were followed by the real estate bubble then subprime crash, which led to the unprecedented printing of trillions of dollars in an attempt to prevent a global depression.

Yellen’s comments suggest, and I agree, that we are in an asset bubble.

The collapse of the housing bubble sent the world spiraling into recession. The collapse of the energy and commodity bubble threatens to be just as damaging.

The euphoria around economic booms often obscures the possibility for a bust, which explains why leaders typically miss the warning signs.

… many, and arguably most economists were claiming right up to the moment of collapse, that nothing like this could ever happen.

Every serious deflation I've looked at is preceded by an asset bubble, and then it bursts.

If the Fed is omniscient, why didn't they pull back on the excess money supply that inflated the massive housing bubble that popped so disastrously back in 2008?

What is uncertain is how much further the bubble can expand, and what might pop it.

The onset of a crisis is usually triggered by a spectacular failure which shakes confidence in fictitious forms of capital.

Bitcoins are not a real investment; they are bets inside a casino. If the price goes back up, don't be fooled. In the parlance of popping investment bubbles, it's something called a 'dead-cat bounce.' People who are desperate to keep the game going rush back in, hoping to bring the price back up, but it never lasts.

The stock market in Japan was half the world market and where has the Japan economy gone since the 1990s? Nowhere. They've been struggling for two decades in the aftermath of a massive bubble that's collapsed. They've tried to work their way out of it by printing even more money and it hasn't worked. Now, I'm saying this is what all the central banks are doing. There is no honest interest rate in the world today.

We just went through the biggest housing bubble in history and now housing prices are starting to go up again. I don’t know what to make of that.

In a bubble, eventually people start saying, 'Wait a minute... these prices are way too high! What is anyone buying anymore? What could they possibly be thinking?' And then there's a correction and a bursting.