General Discussion
In reply to the discussion: **HAD** to go get coffee this morning (I try not to leave the house bc covid) [View all]Ferrets are Cool
(22,956 posts)It is NOT.
1. Real Estate Bubbles
Housing and commercial real estate prices can rise too high too fast, pricing some buyers out of the market. This can lead to a number of factors that might burst the housing bubble.
2. Commodity Bubbles
When inflation expectations rise (regardless of whether or not there is real inflation), investors tend to pile into hard assets like gold, oil, and base metals.
3. Equity Bubbles
Investors who are looking for higher returns may flock to stocks rather than fixed income instruments, causing equity prices to rise, perhaps out of line with reasonable valuations.
4. Debt Bubbles
Cheap money, especially when offered for extended periods of time, can lead borrowers to become complacent and take on more leverage than they can really afford.
Bubbles dont become ugly until they pop. There are 2 main problems with any type of bubble: First, they always pop eventually. Secondly, we never know when they are going to do it.