Thursday, October 02, 2008

Farewell to Bubbles? For Now...

The recent era of the speculative investment bubbles may be at an end, says one of the world's pre-eminent bubble-watchers.

Robert Shiller, who predicted both the tech and housing flameouts with near-perfect accuracy, says it may be a generation before the world sees another major bubble -- such is the damage wrought by the U. S. housing bust.

Psychology, the key ingredient that drives all bubbles, simply will not be upbeat enough to foster a new mania.

More available here in the Financial Post.

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