Bubble is horror. A bubble is a hope for some people. It is like a crisis is an opportunity. Do you remember the IMF foreign exchange crisis? Some people were then disgusted and some became rich. There was a saying that the real rich people were not the ones who did business or business but who used the crisis well.
You can see that there are two kinds of wealth. The first is to create new things and become rich through innovation. The second is to take advantage of opportunities. That opportunity is a crisis. The first is industrial capital and the second is financial capital. Normally, the first class works hard and earns money. Innovation and creativity are important. But the second class earns money through volatility. Stable things are not very profitable to make money. A wide variability can be benefited from the drop.
Where is the bubble? Is the bubble the domain of traditional economics of demand and supply, or is it the second area mentioned above? The answer is both. However, wise readers already know that I am talking about the second time.
Bubbles cause tremendous volatility. The volatility is a tremendous opportunity for financial capital. If such volatility is natural to demand and supply, then financial capital can not benefit greatly. What if such volatility is artificial? Let's take an example. Our IMF situation was created by Soros. Soros shook the Bank of England. He encouraged the global economic crisis with a flimsy argument of recursive theory. Recently, I ate Chinese steam at once. If such a volatility occurs, the person making that volatility will have tremendous profits.
If you observe the market well enough to see such a volatility, you will earn a lot of money if you take it there. Have you ever seen Big Short, which made the case of the crisis in 2008? If you have not seen it, I recommend you see it. You can see how the one-eyed doctor's veil reads the market and takes a shot. As you all know, Short says short selling. It is anticipating the market to collapse and investing in advance. If the market could predict a collapse in the near future, it would be easier to scrape money than to swim in the land.
The bubble refers to the situation immediately before the market collapses. If you say a simple adjustment is a bubble, the definition of the term shakes.
Even with the same foreign exchange crisis, the IMF foreign exchange crisis and the US Lehman Brothers foreign exchange crisis have a significant difference. The first currency crisis saw Soros hit the weak link and artificially saw the market trend. That is, the subject is relatively clear. Second, it is not clear who is responsible for the crisis, but there are many different financial institutions involved. It is common that the first or second person is involved.
Here we can reach a generalization of the rudimentary stage that bubbles are created by who. Naturally, it is not caused by a mismatch of supply and demand over a long period of time. Long-term discrepancies between supply and demand lead to panic. It differs from bubble. Panic is very difficult to solve. Most are overcome in the same way as war. So panic is scary. What do you think if the Second World War was the result of the 1929 economic crisis? Of course, World War I was also the result of the economic depression. Lenin was a clear predictor of the First World War. If you get worse about panic, let's go back because the bubble is confusing.
It is very easy to prove that most bubbles are artificial. For example, you can see.
First of all, our participating government, the surge in real estate prices and the bubble is a side effect created when the government says it is trying to innovate. Those who received compensation at the time came to Gangnam, Seoul, and a bubble was formed in the apartment. Is it difficult to agree if the farmers who received tens of billions of dollars at a time were real estate bubbles?
The second IT bubble came from the Kim Dae-jung government pouring policy funds.
The third tuple bubble was also created by the Bank of Netherlands.
At the time of the fourth Lehman Brothers incident in the United States, real estate bubbles were caused by tremendous funding of financial institutions.
If we look at each example carefully, we can see that the bubble came about through the policy intervention of the financial institution or the state. The bubble occurs after a significant level of intervention, either directly or indirectly. It is difficult to create a worrying bubble as much as households simply invest a lot.
So is not the current block chain a bubble?