Bubbles are man-made,
enforced by government policy and regulation. They breed on human
psychological extremes. And feed on panic.
The onus and guilt may be
thrust on private parties for political purposes, but bubbles exist
only if government agencies permit them to do so.
Actually, it’s far
better that the powers-that-be in government sit on their hands, than
“do something” in the way of remedies. A long-term hands-off policy in a bubble
event often takes care of problems better than short-term political panaceas.
Apart from those called
in to do the short-term, patchwork remedies, If there has to be basic
blame for recent bubbles in the U. S. it can be placed on the heads
of the governors of the Federal Reserve. They are the guilty, who
have made money too cheap. That is always fuel for a bubble.
Bubbles
can be dampened when the availability of currency is tightened.
However, the opposite monetary policy has been the story in U. S.
bubble experience.(See the Earl J Weinreb NewsHole® comments and
@BusinessNewshole tweets.)
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