{"id":4632,"date":"2015-01-19T09:54:06","date_gmt":"2015-01-19T14:54:06","guid":{"rendered":"http:\/\/olduvai.ca\/?p=4632"},"modified":"2015-01-19T09:54:06","modified_gmt":"2015-01-19T14:54:06","slug":"who-benefits-when-bubbles-burst","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=4632","title":{"rendered":"Who Benefits When Bubbles Burst?"},"content":{"rendered":"<p><a href=\"http:\/\/www.oftwominds.com\/blogjan15\/bubbles1-15.html\" target=\"_blank\"><span class=\"Apple-style-span\"><i><b>Who Benefits When Bubbles Burst?<\/b><\/i><\/span><\/a><\/p>\n<p><span class=\"Apple-style-span\"><i>Blowing speculative bubbles cannot possibly lead to\u00a0organic growth\u00a0because speculative bubbles fatally undermine the real economy.<\/i><\/span><\/p>\n<p><b>An astute reader recently posed an insightful question:<\/b>\u00a0we all know who benefits from asset bubbles in stocks, bonds and real estate&#8211;owners of assets, banks, the government (all those luscious capital gains and rising property taxes), pension funds, brokers and so on.\u00a0<b>But who benefits from the inevitable collapse of these asset bubbles?<\/b><\/p>\n<p><b>If asset bubbles end badly for virtually every participant, then why does the system go to extremes to inflate them?<\/b>\u00a0This is an excellent question, as it goes right to the heart of our dysfunctional Status Quo.<\/p>\n<p><b>1. The system has no choice left but to blow serial bubbles.<\/b><b>Broadly speaking, there are three possible answers:<\/b><\/p>\n<p><b>2. Bubbles are domestic opportunities for\u00a0<i>Shock Doctrine<\/i>-type crises that enable further consolidation of power.<\/b><\/p>\n<p><b>3. Those in charge of the Status Quo believe the fantasy that the next bubble will usher in the long-awaited return to\u00a0<i>organic growth<\/i><\/b>, i.e. expansion that isn&#8217;t dependent on central bank stimulus, enormous fiscal deficit spending, ginned-up statistics, etc.<\/p>\n<p>Let&#8217;s consider each possible answer more closely.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Who Benefits When Bubbles Burst? Blowing speculative bubbles cannot possibly lead to\u00a0organic growth\u00a0because speculative bubbles fatally undermine the real economy. An astute reader recently posed an insightful question:\u00a0we all know who benefits from asset bubbles in stocks, bonds and real estate&#8211;owners of assets, banks, the government (all those luscious capital gains and rising property taxes), [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[2732,2733,235,240,1302],"class_list":["post-4632","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bubble-bursting","tag-bubble-pop","tag-economic-bubbles","tag-economic-growth","tag-status-quo"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/4632","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4632"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/4632\/revisions"}],"predecessor-version":[{"id":4633,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/4632\/revisions\/4633"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4632"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4632"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4632"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}