Bubble: The Prosperity Illusion from the Stock Market to the Real Estate Market

Author: (USA) John P. Calverley / Ji Yu
Publisher:
Publish Date: 2006-02-01
Features: Are people using the bubble or being used by the bubble? Bubble! Self-reinforcing prosperity and collapse. Bubbles can bring huge profits but also make investors go bankrupt overnight. What's the secret between heaven and hell?
In 1936, the tulip prices in the Netherlands even exceeded those of gems, and almost everyone participated in a near-crazy speculative frenzy. The first economic bubble in history emerged.
In 1929, the Wall Street stock market bubble burst in the U.S., leading to the global economic depression of the 1930s and the rise of the Nazis in Germany. This bubble brought the most severe disaster to date—the Second World War.
The 1990s became Japan's "lost decade," with the collapse of the real estate bubble, leaving Japan's economy still without full recovery to this day.
In 1997, the Asian financial crisis swept Southeast Asia and Northeast Asia, disrupting the global financial order.
In the late 1990s, Federal Reserve Chairman Alan Greenspan stood by and watched as U.S. and European investors abandoned normal valuation standards, crazily buying stocks, creating the largest stock market bubble in history. Soon after, the stock market collapsed along with the Internet bubble.
Today, real estate bubbles are still playing out in the UK, Australia, Spain, the Netherlands, the U.S., China, and other countries. Once they burst, they may trigger even more severe economic recessions.
In today's era, bubbles are everywhere, with asset price volatility increasing, especially in real estate prices, which dominate the center of the economic stage.
John P. Calverley, Chief Economist and Strategic Advisor at American Express Bank, summarizes the experiences and lessons from the history of economic bubbles and discovers many mythical patterns related to them, particularly in his analysis of the real estate market, which is even more prominent.
The author skillfully applies the technique of chronological analysis, making the work clear and engaging. His unique insights into behavioral finance, especially his observations on how markets deviate from the real economy, shine and captivate readers.
It is believed that everyone will be interested in the topic of bubble economies because the author has provided this accessible work, suitable for both professionals and general readers.
Are people using the bubble or being used by the bubble? How do we survive in a bubble economy? How can we escape the negative impact of a bubble economy? Open up Bubble, and you will find all the answers.