…for low savings rates, then such logic indicates that savings won’t recover until the asset price bubbles start to unwind. In other words, household finances will have to be pinched…

…fiscal and monetary pump priming have served to resuscitate the economy at the cost of inflating bubbles in asset markets. The current weakness shown by leading indicators are portents of…

…did virtually nothing to change monetary policy. The economy did great. However, financial and investment bubbles gathered strength and set the stage for the extremely sharp contraction in both the…

…that bubbles usually last longer than skeptics think they will, but this one has been firing on all cylinders for a while now. I doubt there’s more than a few…

…the Great Bubble? As was the case in the late 1990s, the sustainability of a wealth-driven US economy is critically dependent on the permanence of asset appreciation. Yet bubbles are,…

…the overall upward trend. To provide a broader picture of house price busts, the IMF published a couple of papers about asset price bubbles and crashes last April (available here)….

…its full-employment “effective demand” constraint, with or without QE. So why entertain all the risks associated with QE, namely zombie businesses, more inequality, a divided country, bubbles here and abroad…?…

…know and as I don’t click the links you may suspect I don’t keep up). The idea that it is best to assume that bubbles can’t happen remains dominant. I…

…demand limit. To wrap it up… There will be pressures for inflation or bubbles in asset prices when real GDP reaches the “currently projected” effective demand limit of $16.1 trillion…

…dollars, less net lending to the US from foreigners, and the result is a lower Current Account deficit. One can point to asset bubbles all around the world, Brazil, China,…