Archive for March 10th, 2010

Goldman and bubbles

Posted in bubble, capitalism on March 10th, 2010 by Paul Deng – Be the first to comment

Blaming Goldman Sachs for every bubble sounds silly. But is regulation the solution? Maybe, or maybe not — Bubbles also happens in tightly regulated market, say, in China.

Maybe what we need is smart regulation. Or, bubble is just an integral part of capitalism — As long as there are animal spirits and human greed, bubble can never be rid of.

Ten years after dot.com bubble

Posted in asset bubble, crash on March 10th, 2010 by Paul Deng – Be the first to comment

Comparing market performance after big crashes…

afterbigcrash Ten years after dot.com bubble
(click to play video; source: FT)

The pattern is the market usually go on sideways for a VERY LONG TIME after big crash. This offers a sober lesson for those who got too excited in predicting a robust recovery.