Is it possible for bubbles to bust softly?

Discussion in 'Economics' started by maxitronixy, Jan 19, 2010.

  1. Every landing we have had has been soft. A hard landing ends like Mad Max..
     
    #11     Jan 19, 2010
  2. From
    http://www.investopedia.com/terms/s/softlanding.asp
    "What Does Soft Landing Mean?
    A term used to describe a rate of economic growth high enough to avoid recession, but slow enough to avoid high inflation. Investopedia explains Soft Landing
    When the economy is growing at strong rate, the Fed will try to engineer a soft landing by raising interest rates enough to slow the economy down without putting it into recession.

    Alan Greenspan, the former chairman of the Federal Reserve Board, was a master at the soft landing."
     
    #12     Jan 19, 2010
  3. Specterx

    Specterx

    I think the dynamics of leverage ensure that "bubbles" very rarely just peter out.

    Bubble implies something distinct from "normal" oscillations around the long-term trend or average. Normal oscillations by nature resolve themselves more or less quietly. Problem is when everyone is long and levered 10-1 or more, not only are there no buyers on the sidelines, but a relatively small decline of 10-30% is enough to cause major havoc. Hasn't the entire "housing crash"/"mortgage crisis" been a matter of, at most, 10-15% of U.S. mortgages going into default, of which the banks can usually recover 50-plus cents on the dollar in foreclosure?
     
    #13     Jan 19, 2010
  4. FredBloggs

    FredBloggs Guest

    no you dork!

    bubbles go *POP*, not ______hisssss_____ - caused as everyone wakes up (may happen to you some day) and rushes for the door.

    thats why they are called bubbles.

    what ever next?
     
    #14     Jan 19, 2010
  5. WRONG! GreenScam was the "purveyor of the notion" of soft landingl He was just as FULL OF SHIT AS OBAMA!!
     
    #15     Jan 19, 2010
  6. Only with the help of the government! :D
     
    #16     Jan 19, 2010
  7. Yes, It is called a controlled pressure release.

    Akuma
     
    #17     Jan 22, 2010
  8. No, Bubbles bust loud and clear.
    In the past 4 days the S&P is now down to October highs.
    3 Months in 4 days.

    Capishe?
     
    #18     Jan 22, 2010
  9. Interesting question.

    Yes. Like the bubbles in yeast formation, bubble clustering
    and intertwined economies derive support from and to one another.
    Many of the "Central Banks of a Designated Land"
    and/or "Government" pumps money back into many sectors of their economy and
    attempt to soften market fundamentals and bottoms on a continuous basis.

    I particularly prefer those moneys be put toward infrastructure or asset.
    The government of China seems to be making significant internal purchases of goods manufactured and
    mineral wealth, both of which are current and future buffers to support "Bubble Economy dynamics."
    While it appears the FED and thr "Corporation of Washington DC" are pumping moneys into liquidity
    sectors just building "felt" value like a con job versus the real value of just weights and measures.

    And No. Perspective, location and preparation are the issue. A general market decline can be felt
    due to several bubbles breaking their "ability to support" threshold. Some may feel no affect, others may experience
    devastation depending if your in the areas affected and your preparation to ride it out.
     
    #19     Jan 23, 2010