*Bubble - Asset price inflation rises above what incomes can sustain.
-All bubbles are A.] self reinforcing (rising prices cause prices to rise, falling prices cause prices to fall.) B.] end suddenly and swiftly C.] roughly symmetrical in time and price (they take about as long to wind down as they do to wind up.)
*Bubbles follow the same trends all throughout history regardless of asset type or time period.
-This point illustrates the fact that bubbles are not based on the year or the type of asset, but are instead based on human emotion (namely greed, fear, and hope.)
*The most recent housing bubble (uptrend from 99-08 before bursting) was predicted by many economists in 2000 but the Fed denied that it was a bubble using false research.
*Total market debt increased by $25 trillion thanks to the bubble.
*We may be heading towards a huge credit bubble. This bubble could cause the many things that have benefited from easy credit to collapse as well (stocks, bonds, income, real estate, etc.)
**HYPER SPEED VERSION**
Bubbles represent fear, greed, and hopes effect on economics and are predictable. Rising asset prices will cause asset prices to rise and vice verso. The Fed used bad data to convince people that we were not in a housing bubble between 1999-2008 and were wrong. Total market debt has increased by $25 trillion since 1999 and we may be heading towards a huge credit bubble that will cause a great number of asset prices to collapse.