"This time is different": the stories that inflate bubbles
Every bubble comes with a persuasive story about a new era. Why those stories are usually partly true, how they get stretched too far, and how to test a new-era claim.
10 min read
Insights topic
Finance
66 articles on this topic.
Articles tagged Finance
Utility: putting a value on outcomes when choices are uncertain
Expected value is not enough when outcomes are risky. How utility theory, rational preferences, risk attitudes and the maximum expected utility principle help make consistent choices.
10 min read
Wealth effects: how rising asset prices change the way people spend
When shares or homes rise in value, people feel richer and often spend more, save less or borrow. How wealth effects work, why they reverse, and what they mean for businesses.
10 min read
After the peak: what happens when a bubble bursts
When a bubble bursts, falling prices, distressed borrowers, cautious banks and wary consumers can turn a market correction into a recession. How the bust unfolds and how recovery comes.
10 min read
Why bubble warnings come too early, and why timing is so hard
People who warn of bubbles are often right about the risk and wrong about the timing. Why warnings arrive early, why markets can stay overvalued for years, and how to act without predicting the top.
10 min read
Why the cash flow statement keeps a business honest
Profit and cash are not the same thing. How the cash flow statement shows what a business really generates, spends and returns, and which patterns signal strength.
10 min read
