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by coldtea 1612 days ago
Because that's the nature of bubbles?

Though bubbles are a bad analogy: actual bubbles burst, economic bubbles deflate - not because of a puncture, but because they were continuously filled with air from a source that at some point can't provide it anymore.
2 comments
yojo 1612 days ago
While true, this misses the point of the article. What was the source of the air? The author claims cheap homebuyer credit and laxer lending requirements explains 90+% of the run up. They also claim this is non-obvious.
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coldtea 1612 days ago
They do claim it, but how is "cheap homebuyer credit" and "laxer lending requirements" non obvious? I call BS - especially since there have been warning spelling those exact issues out time and again...
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eliasmacpherson 1612 days ago
People were a lot more economically illiterate before the GFC, and it was an awful lesson for a large section of the global population.
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capableweb 1612 days ago
> actual bubbles burst [...] not because of a puncture, but because they were continuously filled with air from a source that at some point can't provide it anymore.

Don't they burst because the source doesn't stop before the bubble gets larger than what it can be? The source stopping would just lead to a deflation where it slowly gets smaller if the air hole is still open, or remain the same size until tiny leaks make it not be the same size anymore.

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coldtea 1612 days ago
>*Don't they burst because the source doesn't stop before the bubble gets larger than what it can be? (...) The source stopping would just lead to a deflation where it slowly gets smaller if the air hole is still open

To continue my analogy, I prefer to visualize them as flying uncontrollably while shrinking very quickly (but not immediately as a puncture would), propelled by their own deflation discharges...

So, this kind of thing: https://www.youtube.com/watch?v=6CTnTi1Lq60

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capableweb 1611 days ago
Sounds like your analogy is more about balloons rather than bubbles. Bubbles make me think of these: https://www.techexplorist.com/wp-content/uploads/2020/02/bub...
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coldtea 1610 days ago
I guess you're right... I think of it the analogy more like baloons than water bubbles...
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