Streams

Boombustology

Friday, May 27, 2011

Vikram Mansharamani, lecturer at Yale University and a global equity investor, explains how to identify unsustainable booms and forthcoming busts. Boombustology: Spotting Financial Bubbles Before They Burst gives an in-depth look at several major booms and busts and shows how to identify upcoming financial bubbles and the tell-tale signs of a forthcoming bust.

Guests:

Vikram Mansharamani

Comments [9]

David

Here's why we have booms and busts:

http://mises.org/books/fed.pdf

http://mises.org/tradcycl.asp

Every other explanation is a lot of nonsense that, believe it or not, is promoted by the people who benefit the most from these boom-and-bust cycles: the Banksters.

May. 27 2011 02:34 PM
jgarbuz from Queens

To Michael D.D.

Indeed, the century plus old argument whether or not to adopt "progressive" income taxation over flatter taxes had as one of the arguments, that left with too much cash in their pockets, the rich may indeed engage in speculative "investments" and leave the middle and poorer classes holding the empty bag when the bag eventually bursts. Definitely an important consideration in this perennial question.

May. 27 2011 12:39 PM
Amy from Manhattan

"Please, another bubble"? "The Onion" was onto that 3 years ago! http://www.theonion.com/articles/recessionplagued-nation-demands-new-bubble-to-inve,2486/

May. 27 2011 12:37 PM
Michael D. D. White from Brooklyn Heights

My question about income inequality as a possible cause for booms is related to these possibilities:

1.) A lot of extra money sloshing around amongst those at the upper income of the income spectrum who don't need it for "necessities."

3.) Less and less money being spent by those who really need to evaluate the utility of almost all of their purchases.

- Not that a boom that starts and is fueled at the upper end doesn't ultimate attract those at the lower end to participate.

May. 27 2011 12:24 PM
Amy from Manhattan

GW, this is the 1st segment on the show, which is always right after the 12 o'clock headlines. But today's show is all rebroadcasts of recent segments, so if they didn't discuss what you asked about when it originally aired, they can't add it now.

May. 27 2011 12:19 PM
Frans Verhagen from New York City

Should we not start thinking about a credit-based financial system replacing the present debt-based system as proposed by New Economics Foundation and others?

May. 27 2011 12:17 PM
Michael D. D. White from Brooklyn Heights

Are booms ever possibly related to inequality of income?

May. 27 2011 12:16 PM
jgarbuz from Queens

I predicted the real estate collapse WAAAY back in 1991, and was surprised it took so long. But then I also predicted the fall of the USSR in 1984 (with the death of Andropov), as well as the rapid rise of India back in 1992 with the opening of its economy and mitigation of socialism. My only major mistake was in not catching the incredibly rapid rise of China in time, believing that Russia would be the rapid riser.

Well, 3 out of 4 ain't bad.

To forecast and understand any boom, you first have to clearly understand the structural underpinnings of the particular economy you are studying.

May. 27 2011 12:09 PM
GW from UES

Can you please discuss tech bubbles; whether we are currently in one; why the current investment boom is not as dangerous from the dotcom era.

Also, what time is this segment on??

Thanks!

May. 27 2011 11:31 AM

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