What a nice head of foam.

A new bubble will replace the old one.

NEW HAVEN You might think that we have been living in a post bubble world since the collapse in 2006 of the biggest ever worldwide real estate bubble and the end of a major worldwide stock market bubble the following year. But talk of bubbles keeps reappearing new or continuing housing bubbles in many countries, a new global stock market bubble, a long term bond market bubble in the United States and other countries, an oil price bubble, a gold bubble, and so on.

The bubbles, not my bubbles, but the financial bubbles.

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But it was a bubble and a highly leveraged one at that. While periodic bubbles may be unavoidable, and no bubble is without consequences, a highly leveraged bubble tends to cause far more damage, owing to its impact on the real economy and the duration of the deleveraging process.

Angel Foam.

With lots of foam.

We've got bubbles going up there, then suds at the top with lumpy tiles.

Bubble Spotting

Bubble Trouble

Bubbles Forever

Bubbles in the Broth

We had the bursting of the tech bubble.

The Trouble With Financial Bubbles

The Great Emerging Market Bubble

America s Education Bubble

The Gold Bubble and the Gold Bugs

Foams end of life

Since their collapse in 2007, US households have understandably become fixated on repairing the damage. That means paying down debt and rebuilding savings, leaving consumer demand mired in protracted weakness.

Letting China s Bubble Burst

Angel Foam never heard of it.

Israel s Election in a Bubble

Bottom right depicts our universe, which on the horizon is not beyond that, but even that is just one bubble, as it were, in some vaster reality.

Foams Technical Options Committee

And there he was, his face all over soap.

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On the other hand, in some places, a speculative bubble is fueling today s boom in vacation home prices. The vacation home boom appears psychologically tied to the urban home price bubble in many of the world s glamour cities, and prices of these vacation homes are similarly vulnerable to a significant drop in coming years.

Another downside risk is that the dollar funded carry trade may unravel, crashing the global asset bubble that it, together with the wave of monetary liquidity, has caused. And, since the carry trade and the wave of liquidity are causing a global asset bubble, some of gold s recent rise is also bubble driven, with herding behavior and momentum trading by investors pushing gold higher and higher.

They put them in foam, little containers.

Why Small Booms Cause Big Busts

Maybe the word bubble is used too carelessly.

Foam end of useful life issues

Yes, it's beautiful with the foam on the crests of the waves.

Speculative bubbles are the visible manifestation of that temptation. As the bubbles burst and they always do false prosperity is exposed and the defensive tactics of market manipulation become both urgent and seemingly logical.

We can say, Well how fast does the bubble burst?

One problem with the word bubble is that it creates a mental picture of an expanding soap bubble, which is destined to pop suddenly and irrevocably. But speculative bubbles are not so easily ended indeed, they may deflate somewhat, as the story changes, and then reflate.

They're now putting bells in the bubbles.

When both bubbles burst first housing, and then credit asset dependent US consumers were exposed to the American strain of the Japanese disease first diagnosed by Nomura economist Richard Koo.

This is Jesse, and he's squeezing a foam toy.

Well, at least you made a 10spot on Angel Foam.

Frei Otto was starting to use foam bubble diagrams and foam bubble models to generate his Mannheim Concert Hall.

The lesson is that politics and economics are inseparable. Markets on their own may be neither efficient nor stable, but the politics of deregulation gave scope to unprecedented excesses that led to asset bubbles and the rolling crisis that has followed their collapse.

There are times when being proven right brings no pleasure. For several years, I argued that America s economy was being supported by a housing bubble that had replaced the stock market bubble of the 1990 s.

But if financial markets are already frothy now, consider how frothy they will be in 2015, when the Fed starts tightening, and in 2017 (if not later), when the Fed finishes tightening? Last time, interest rates were too low for too long (2001 2004), and the subsequent rate normalization was too slow, inflating huge bubbles in credit, housing, and equity markets.