you’ll laugh, you’ll cry, it’ll change your life

ECONOMIC BUBBLES

yes, this is similar to the previous post

Bubbles seem to be the result of people believing that what they have is worth a lot more than it really is, and then convinving other people of it’s (false) higher value.  When the other people realize it’s not worth what they paid, they want their money back.  But the money is gone, it’s been turned into gold coated bob-bons (now consumed).  The results of useful efforts have now gone to pay for less useful things (bon-bons are tasty though).  That effort has been wasted and printing more money will not create a value that didn’t exist in hte first place.

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