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...
Event Menu: March 17-21
Austin gets multicultural with St. Patrick's Day, the Persian New Year, and Uchi
Cinema Opportunities for the Week of 3/19-3/25
Time for the weekly roundup of Weird Wednesday, Terror Tuesday, special events and new releases that you mustn't miss. (via Austin Cinephile)
Forbes: Austin Economy Good
According to Forbes.com, the Austin-Round Rock area tied for first on a list of large metropolitan areas where the recession is easing. The report listed Austin and Washington D.C. as the two...
Did Sao Paulo get what it wanted?
This doesn't have any relevance to Austin, but it's still interesting.A few years ago, Sao Paulo banned essentially all outdoor advertising. Not just billboards but virtually any...
Did Sao Paulo get what it wanted?
This doesn't have any relevance to Austin, but it's still interesting.A few years ago, Sao Paulo banned essentially all outdoor advertising. Not just billboards but virtually any kind of...
Post new comment