Dec
27th
Sat
27th
Bubble bubble
The Economist has an article on The beauty of bubbles, arguing that even asset bubbles popping leave behind lasting value.
Examples are the Florida Real Estate bubble in 1920, the railway bubble in 1840, the telecom bubble in 1990 or the more recent real estate bubble in UK and Dubai.
My favorite quote is from an IPO prospectus during the South Sea bubble of 1720, where the company described itself as:
a company for carrying out an undertaking of great advantage, but nobody to know what it isSounds a lot like a Special Purpose Acquisition Company (SPAC) of modern days …
