A bubble exists when people are paying prices that make no sense. "No sense" as in, "There's no way in hell that this asset will ever generate enough income to pay them back."
Here's a nice illustration.
The authors of this paper conducted an experiment with college students.
They gave each student some money and some "stock." Trading was divided into 10 periods. During each period, students were allowed to trade stock.
At the end of each...
Whitney Houston Has Died At Age 48
Whitney Houston's publicist, Kristen Foster, has confirmed that the singer died today at the age of 48, though it's unclear what the cause of death was, or where she was when she died. Most...
Snow Expected In Central Texas
Snow is in the forecast for Central Texas.The National Weather Service has issued a Winter Weather Advisory for the Hill Country from 6 a.m. to noon.“There is good potential for the...
Me, APD, and 'Babysitting While White,' Part Deux
Walking home in East Austin on a Friday night, we had no one to fear but Austin PD (via Grits for Breakfast)
Support Your Trail: Valentine's Social Run
For Valentine’s Day, consider showing some love to The Trail Foundation. Join them at City Hall Plaza at noon on Tuesday, February 14, 2012 and take part in either a one mile or...
Three's Company & Empty Nest: An Interview w/ Stag Comedy
It was just this past November that I was doubled over in my chair in a dark room at Coldtowne Theater, tears of laughter running down my face, trying to catch my breath while watching Stag...
Post new comment