Bubble Formation Quotes

On good days, I've done bubbles with as many as 38 faces - a row of pentagons, a row of hexagons, and another row of pentagons on bottom.

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

Stock market bubbles don't grow out of thin air. They have a solid basis in reality, but reality as distorted by a misconception.

A meringue is really nothing but a foam. And what is a foam after all, but a big collection of bubbles? And what's a bubble? It's basically a very flimsy little latticework of proteins draped with water. We add sugar to this structure, which strengthens it. But things can, and do, go wrong.

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.

When interest rates are low we have conditions for asset bubbles to develop, and they are developing at the moment. The ultimate asset bubble is gold.

The reason bubbles are spherical is that a sphere is the smallest, most economical form possible to contain a given volume.

I'm of those who believe that excesses in all matters are not a good idea, whether it's formation of bubbles, whether it's excess in the financial market, whether it's excess of inequality, it has to be watched, it has to be measured, and it has to be anticipated in terms of consequences.

Indeed, bull markets are fueled by successive waves of prior skeptics finally capitulating as their fears fade. Eventually, fear turns to euphoria, and that's the stuff of bubbles.

It's like simulating earthquakes: we can over and over study a bubble, crash, bubble, crash. Then we can see mathematically if there's some regular pattern and what's going on in people's brains when prices are going up and before the crash is happening.

Bubbles only break for a few different reasons, so if I can avoid those things, I can get a lot of things to happen.