Bubble to me

Bubbles’ are much in debate by the Analysts,Economists and the fellow financial media, Emerging markets, NAMO wave, FIFA 2014, Dubai Property blogprices and so on.

A key issue, obviously, is what is a bubble.

The Brunnermaier definition is

Bubbles are typically associated with dramatic asset price increases followed by a collapse. Bubbles arise if the price exceeds the asset’s fundamental value. This can occur if investors hold the asset because they believe that they can sell it at a higher price to some other investor even though the asset’s price exceeds its fundamental value.  Continue reading “Bubble to me”