Bubblenomics (bubble + economics)

“Bubblenomics” (bubble + economics) is the economics of a financial bubble (when prices are inflated). “The Story of Bubblenomics” (1999), a paper presentation by William A. Fleckenstein of Fleckenstein Capital, was one of the first to use the term. A month later (in October 1999), “bubblenomics” was printed in The Economist.
 
The New York (NY) Times published the article “Bubblenomics” by David Leonhardt on September 20, 2008.
 
   
Fleckenstein Capital
Fraser Management’s The Contrary Opinion Forum (Sept 29th – Oct 1st, 1999)
Spinning Financial Illusions – The Story of Bubblenomics
Presented by William A. Fleckenstein
What is a bubble? Webster’s New World Dictionary defines bubble as:
 
. A film of liquid forming a ball around air or gas.
. A transparent dome.
. A plausible scheme that proves worthless.
 
Unfortunately, what has transpired over the last five years in the financial markets has been a bubble. While the entire market obviously won’t prove to be worthless, the declines in store for most securities will be tremendous.
 
I would like to begin today by describing the various factors that collectively have created the financial environment in which we currently find ourselves. I shall then demonstrate that this is a bubble by comparing today to the late 1920s and offer some thoughts as to the potential severity of the aftermath of this bubble. Lastly, I will make a stab at guessing what might pop it.
   
The Economist
Letters
Oct 21st 1999
Bubblenomics
Sir— I am delighted that a British newspaper finds it necessary to poke its editorial stick at America’s “bubble” so frequently. Phrases in your survey of the world economy (September 25th) such as “classic symptoms” and “history suggests” tell us a bit more about the collective psychology of The Economist than America’s economy. You are imposing historical analysis on an economy whose growth is actually highly complex.
 
The limited image of a bubble is certainly not fitting. Entire industries are being created on the foundations of an “information economy” that are not accurately reflected in the slurry of historical government statistics. Nor are there any precedents by which to judge our new intellectual wealth. For those anxiously awaiting the next Great Depression, may I politely suggest that you get involved in the revolution instead.
TIM ARCHDEACON
Oyster Bay, New York
   
Financial Sense Perspectives
Part 4 - The Gathering Storm
October 3, 2000 © Copyright 2000 James J. Puplava
(...)
BUBBLENOMICS
Much of what is heralded as America’s economic “New Era” is an illusion. It stems from statistical wizardry by government number crunchers and corporate accountants. Statements about the U.S. economic miracle of the 1990’s omit several embarrassing details: the expansion of the nation’s money supply, the explosion of consumer and corporate credit, gigantic trade deficits, and our dependence on massive amounts of foreign money.
 
Google Groups: alt.peeves
Watching MSNBC: “In the long run…
Nosy
7/6/03
(...)
I wrote poorly. Even the Argey whatever-it-is and the Mexican peso briefly gained on the “dollar”, as the price of bubblenomics continues to mount up.
 
A. Greenspan, your bubblepipe is getting low…better puff harder.
 
Google Groups: alt.politics.republicans
Are we inching toward Germany circa 1933?
Brandon K. Montoya
7/7/05
(...)
There have been plenty of bubbles over the past five centuries, but with the exception of the equity boom of the 1920s, none that could wreak as much devastation as the current three—if they pop. Bubblenomics has always been a mad science; but the huge sums involved today are truly frightening. It is lucky for Greenspan that he will be retiring next year: if the housing, hedge funds and Chinese bubbles turn nasty, his reputation will take a battering.
     
New York (NY) Times
PUNCTURED
Bubblenomics
By DAVID LEONHARDT
Published: September 20, 2008
The past week, by any standard, has been an extraordinary one for America’s economy and its financial system. Merrill Lynch, which was founded during Woodrow Wilson’s administration, agreed to be bought for a bargain-basement price, while Lehman Brothers, which dates back to John Tyler’s presidency, simply collapsed.
 
OCLC WorldCat record
Bubblenomics
Author: R T Murphy
Publisher: [London, New Left Review Ltd.]
Edition/Format: Article Article : English
Publication: New Left review. no. 57, (2009): 149-160
Database: ArticleFirst
 
OCLC WorldCat record
Bubblenomics 101
Author: M Blackman
Edition/Format: Article Article : English
Publication: TECHNICAL ANALYSIS OF STOCKS AND COMMODITIES -MAGAZINE EDITION- 27, no. 3, (2009): 34-42
Database: British Library Serials
 
Phil’s Stock World
This entry was posted on Monday, May 9th, 2011 at 11:44 am
A Short History of Bubblenomics
Courtesy of MIKE WHITNEY at Grasping At Straws
Assets bubbles require massive amounts of leverage. But too much leverage can destabilize the system, so it needs to be regulated. But Wall Street doesn’t like restrictions on leverage because it can make more money by borrowing like crazy, inflating a ginormous bubble, skimming off the profits, and cashing in before the crash. So, the Fed ignores Wall Street’s “gearing” operations and pretends not to see what’s going on. It becomes a bubble “enabler” by lowering interest rates, easing credit and waving-off tighter regulations. It’s all part of the game. The Fed works to help its core constituents while everyone else is put at risk.
 
Zero Hedge
Bubblenomics And The Future Of Real Estate
Submitted by Tyler Durden on 07/22/2014 14:47 -0400
Submitted by Ramsey Su via Acting-Man blog,
(..)
In the meantime, money printing and hype will continue.