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12 sats \ 3 replies \ @Undisciplined 8h \ on: Are Bubbles Good, Actually? (Financial Times, Tim Harford) econ
Financial bubbles are a problem because they're an effect of artificial credit expansion, a distortion working its way through the economy.
Industrial bubbles sound more akin to market discovery processes. Is that how I should think about the distinction?
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42 sats \ 2 replies \ @SimpleStacker 7h
That makes sense to me. An industrial bubble just sounds like a high froth of creative destruction which could be a good thing
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33 sats \ 1 reply \ @Undisciplined 7h
Market actions are only known to be welfare improving ex ante.
Since we can always be mistaken about how things will work out, ex post reality isn't always better.
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42 sats \ 0 replies \ @denlillaapan OP 7h
thats a good summary right there, methinks
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