06-17-2011 11:20 AM
There had been some recent articles on the web regarding "economic bubbles." Wikipedia gives one definition of an "economic bubble" as "trade in high volumes at prices that are considerably at variance with intrinsic values." So if we use the "Dutch tulip bulb bubble"(say that three times fast) as an example, the price of one tulip bulb was known to be as high as the price of a home. But if I, or the Dutch government, had been able to control the market on tulip bulbs, or ban on the trade of tulips altogether, then the economic bubble wouldn't have burst. So, later in history, as people became more aware of entire economies that could collapse similar to that of the Dutch economy during its tulip bulb craze, "the economic bubble" definition expanded itself- that is, it became more than just an economic phenomenon, but it was also a sphere of "control" or "influence", where the regime in control knew of a few necessary ingredients (i.e. learned lessons in history) to maintain an "economy" or a "bubble" But they could maintain the bubble for only so long, and then, another burst would occur. And after the burst, I would learn about a few missing ingredients and about how to create a better bubble in the future, so to speak....what do you think?
PS- This is what I gathered to be the definition of "economic bubble" starting around the early 20th century. In fact that may have been how bubble was first defined- "economic bubble" was not only defined as wikipedia had defined it, but the first definition, or early definitions included "the bakers" of the bubble and their recipes, so to speak. I tend to think people learn nothing from history, but maybe they did....And the "bubbles" can literally be different realities, like the 1920's...and if you leave the bubble, you leave reality altogether...intersting stuff