Abstract This paper reviews asset bubbles and assesses the future implications of the Internet IPO Bubble. It discusses the performance of equity stock markets. The paper also explores the long recovery period of bubbles.
From the Paper "Over the centuries during which organized asset trading has occurred there have been several spectacular bubbles rapidly increasing asset prices that surpass supportable values for the underlying assets, dramatic market crashes, rapidly plunging asset prices to levels well below supportable values for the underlying assets and eventual recoveries where asset prices roughly equate to supportable values for the underlying assets. There have also been put forward many more explanations for these anomalies in asset pricing than there have been ..."
Abstract The paper discusses how some enterprising economists have made the argument that the infamous tech-bubble of the late 1990s and first part of 2000 could actually be interpreted as an expression of an efficient market merely correcting itself. The paper explains that this concept is also expressed as a rational bubble as opposed to an irrational bubble, to make the argument that, in effect, the high-tech stock meltdown beginning in April of 2000 was only a normal market correction in an, admittedly, over-heated market.
Abstract This paper details an asset pricing phenomena that is known as Bubbles. The writer of the paper provides a history of Bubbles with several detailed examples of past Bubble events. In addition the writer uses the Wall Street Journal as a backdrop to discuss a recent Bubble occurrence.
From the Paper "We have witnessed them for many years. The bubbles that cause unbelievable price soaring for reason that nobody seems able to explain and then as suddenly as they started they stop. When they stop they can come crashing to the ground in a heap, as is often the case. Real estate, companies, and industries are subject to the asset pricing phenomena called bubbles and anyone who gets in on the bottom and then sells before it bursts stands to make a financial killing. Unfortunately those who hang on to long or don?t think to jump in when it starts lose all the way around."
Tags: economy, burst, finance, Real, estate, companies, industries, internet
Abstract This paper discusses the nature of the housing market across the US and in particular the warnings of a looming bubble market. The bubble concept is more fully explained in this paper and the authors go on to support their suppositions through quantitative research based on housing prices and median incomes. Additionally, they collect qualitative research in the form of surveys from homeowners/home buyers and relate this data to the market statistics. The final analysis of this paper, is that some aspects of a bubble market exist but that the concept of bubble is more related to perception than reality.
From the Paper "The topic that the learning team settled upon as presenting both one of general interest and also of a certain pragmatic interest to students in general is one of housing issues and concerns for students attending the University of Phoenix in Silicon Valley. The title of the article referenced is 'Is There a Bubble in the Housing Market?'. This article was deemed particularly relevant because a housing bubble, in relation to local housing concerns in Silicon Valley, has a direct impact on the affordability, much less the presence, of student housing availability. The authors of this study are both university professors. Robert Shiller is a professor at Yale University and has authored several books regarding the housing industry and related issues, such as Irrational Exuberance among others."
This paper focuses on the understanding of the housing market, discussing the price of housing and sudden changes in the prices - so as to explore the sustainability of the argument that there exists a housing bubble that is about to burst.
Abstract In this article, the writer outlines how demand and supply analysis can be used to analyze the housing market, especially in wake of the fact that there is now increased speculation of a housing crash as prices begin to depreciate rapidly within the housing market. With these current changes on the market, the writer notes that it becomes somewhat useful to analyze whether the housing bubble is about to burst, or if other markets are affecting the activities within the housing spectrum. The writer argues that the housing bubble is not going to burst since there is no bubble - and changes in the housing prices are due to changes in market demand and supply conditions.
Outline:
Statement of Problem - Thesis Statement
Introduction
What Has Been Causing The Price of Housing to Appreciate and Depreciate So Rapidly? - An Economic Perspective
Housing Price Appreciation - A Bubble or Changes in Market Conditions?
A Brief Look at the US Housing Policy and Market
Conclusion
From the Paper " With the demand and supply for housing analyzed, then the concept of the equilibrium within the housing market can be examined. It is clear that changes within the economy will affect the price of housing; each of the relevant changes will be analyzed below, so as to test the thesis statement presented. The changes in supply and demand are causing housing prices to increase, even though the change in quantity is unsure. During the historical period analyzed, factors that caused supply and demand to change based on figure 1 and figure 2 were associated with the appreciation of housing prices. Hence the appreciation was due more so to market conditions rather than a bubble due to speculation. A thorough examination of the processes that affect supply and demand is presented in the section below."
Abstract The NASDAQ and the arguments regarding whether or not the NASDAQ's rapid ascent and decline signifies that the NASDAQ was and is merely an overinflated bubble are discussed in this paper. Part II discusses arguments in favor of the position that the NASDAQ was and is simply one large bubble. In Part III, arguments in favor of the position that the NASDAQ was not and is not merely one huge bubble are raised.
From the Paper "What the stock-market indicators do not reveal, but that the free-fall offered a rare glimpse of, is the disturbing growth of ?digital sweatshops,? anti-union policies, mandatory urine testing, and harsh working conditions which would not be accepted in other professions. (Burns). Slave-driven coders and programmers who are scrapped by age thirty-five, call center support staff, and marketing specialists trapped by their own psychographic profile are the new under-class. (Burns)."
Abstract This report brings together modern theory of corporate finance with contemporary financial developments as described in the "Wall Street Journal", print and interactive editions, to describe the phenomena known as "Asset Bubbles." Asset bubbles have been a thorn in the side of investors for centuries, and this report helps the reader understand the asset bubble phenomena and why it occurs.
From the Paper "All throughout history numerous investors have been caught off with their pants down, to say the least, by the bursting of one speculative bubble after another. Speculative bubbles are an investing phenomenon that can be like a pride of lions getting the smell of blood when an antelope has been downed. It can be said that these bubbles are usually caused by greed and others feel that they simply a lack of common sense or some type of flaw in us humans. Whatever the case, investors consistently repeat the mistakes associated with speculative bubbles. ?A bubble occurs when investors put so much demand on a stock that they drive the price beyond any accurate or rational reflection of its actual worth, which should be determined by the performance of the underlying company.?
Tags: finance, computer, technology, silicon, valley, hitech
Abstract This paper discusses the 21st century ecotourism bubble and tourist enclaves. The paper discusses the reasons for these phenomenons around the world and how they are affecting tourism worldwide. The paper also looks at some of the fallacies of ecotourism and explains why ecotourism does not really provide what it says it provides.. The paper includes examples of tourist enclaves and ecotourism bubbles to explain its points.
From the Paper "Many will consciously avoid known tourist enclaves, aware that their interest in a visited place should be 'deeper' or less hedonistic than simply enjoying themselves in an attractive and affordable locality. On the other hand, one does come to know of other conventions that seem quite similar to the ecotourism criticized just now. For instance, when speaking with students have 'volunteered' in Commonwealth Caribbean countries or graduate students to have embarked on 'fieldwork' one learns that their efforts have very much been organized to form another kind of package-experience. If researching a subject of Barbados, for instance, a safe way has been found to be "in" the local society and observe - always, a certain voyeurism, at hand - and little sense of adventure displayed. If 'studying' poverty or social conditions for the poor, for instance, it seems unimaginable for researchers to stay with the people studied. In dozens of developing and developed countries, anthropologists engage in what seems another variety of tourism in that there can be much attention to reducing risk, not mixing with unsavory elements, not trying to see that they come to fully understand phenomena - not as presented to them by educated counterparts in the society they visit, but by people as opposed to 'subjects'."
Abstract The paper outlines the chronology of the fall of the rising housing market in 1990 to the boom and subsequent end of the housing bubble in 2006. The paper explains how sub prime mortgages were responsible for inflated housing prices and then predicts that the economy will punish this excess.
From the Paper "The main topic of conversation with friends and family in the late 1990's was the stock market boom. Every conversation started with the main stock to buy followed by the rush to log into a stock brokerage account and purchase the hottest stock, which assuredly would give a profit the next hour. After the tech bust in 2001, the topic of conversation has changed from the stock market boom to the housing boom. From 2001 until approximately the middle of 2006, the housing market has at least doubled, with places like Florida, California, and other parts of the nation seeing double-digit growth."
Abstract This paper explains that, throughout history, investors have been caught off-guard by the bursting of one speculative bubble after another. The author believes that investors should be in the market for the long haul to reduce its volatility. The paper suggests the use of the stop-loss orders on every stock purchase, which stop a stock's free fall when things go wrong; the IBD philosophy is to set the stop at 8% below the purchase price.
From the Paper "Like an overzealous clown blowing up balloons, eventually those balloons will not hold any additional helium air and they, well, ?BURST.? We should learn financial history for the sake of avoiding making the same idiotic mistakes from other generations. But, our human nature continues to allow great financial and social losses to occur because speculative bubble investing continues. Some examples of speculative bubbles have colorful names like the Tulip-Bulb craze, the south sea bubble, the Florida real estate craze, the nifty-fifty era and, yes, The Crash of 1987."
Abstract This paper examines how preventing or lessening senseless carnage caused by terrorism is the mission of a small Florida-based hi-tech start-up company called BlastGard International. It looks at how it produces and markets a bubble wrap-like material that, when lining the inside of a garbage can, will absorb and dissipate a blast from a backpack-size-bomb hidden there in less than one thousandth of a second. Called BlastWrap, the material is actually a patchwork of 2.75-inch compartments stuffed with numerous foamy pellets commonly found in potting soil.
From the Paper "For a start-up company marketing a first-in-breed new technology, though, what matters more than an array of potential market segments is finding an immediate set of customers. For BlastGuard International, the most promising candidate in this respect is the U.S. Department of Defense (DoD). It allocates almost $100 million annually in the Technical Support Working Group which brainstorms new ideas that might be useful in the war on terrorism. To date, DoD has gone on to invest in such TSWG-sourced ideas as blast-resistant building designs, countermeasures against explosives and weapons of mass destruction, personal-protection equipment, and equipment for military and civilian emergency-response teams for chemical incidents. ("DOD Seeks Technology")"
Abstract The paper explores the early forms of the U.S. economy, industrialization, the Great Depression, World War II and the dot-com bubble of the 1990s. The paper explains the various factors that have affected the way the economy operates today.
From the Paper "The very earliest economy in the U.S. was started in the early1600s where the first permanent settlement was founded, Jamestown. The people of this time were very self-sufficient. The colonists operated their own farms, and many were in the fur trade or fishing business. Some of the large plantation owners were able to export some of their goods in order to get things like tobacco, rice, and indigo (blue dye).
"As the colonies grew into the 18th century, so did the economy. This was a time of great prosperity for these colonists who in fact were entrepreneurs. During this period of U.S. history, we began to see a lot of sawmills and shipyards develop. We also saw the development of iron forges. This time period saw the standard of living of the colonists actually become greater than the standard of living of England itself ( http://usinfo.state.gov/products/pubs/oecon/chap3.htm)."
This paper discusses the economic crisis in Asia in 1997-8 in the light of other crashes throughout history, from the prototypical and definitive bubble-and-crash phenomenon to the recent 1989 bubble and crash of the Japanese stock market.
Abstract This paper explains that, generally, the cause of the crisis can be narrowed down to government and banking financial policies at the time of the crisis, which were trying to develop foreign exchange currency strength in the face of insurmountable internal weaknesses. The author points out that the effects of the economic problems of the troubled Asian countries adversely affected the whole world, especially the United States and Japan. The paper stresses that it is very hard it to predict the financial future in terms of economic crisis, no matter how obvious the signs seem in retrospect.
Table of Contents
Introduction
Causes of Crisis
Effect on World Economy
Solutions
Conclusion
From the Paper "As mentioned, the Asian financial crisis of 1997-98 can be compared in many ways to the 1989 Japanese Stock Market situation, which in turn bore some similarities to the 1929 crash in America, in that banks did not respond appropriately and raised interest rates or kept them the same instead of cutting them, in the fear that decreasing interest would only feed more speculation. The result was similarly a disaster. The banks of Japan essentially burst the speculative bubble themselves after increasing deregulation along with a dearth of experience had created new paradigms for them with which they were not prepared to deal."
Tags: policies, government, banking, currency, global
Abstract This paper looks at the currency crisis in Thailand, which started in the summer of 1997 and rapidly engulfed a number of East Asian "Tiger economies" in a major financial crisis. This crisis became a an interesting case study for economists who were interested in analyzing the pros and cons of globalization and laissez faire market economies. The author further examines the effects of the East Asian currency crisis, on Thailand itself, which underwent a painful re-adjustment of its economy.
Outline:
Background
The Danger Signals
Foreign Exchange Reserves
Current Accounts Deficit
Excessive Credit Expansion
Why Did the Growth Slow Down?
The Housing and Real Estate Bubble The Stock Market Bubble The Crisis
The Aftermath of the Crisis for Thailand
Conclusion
From the Paper "The country took a number of measures to attract foreign capital during the 1980 and early 1990s. These included lifting of restrictions on foreign investments, elimination of most barriers on foreign ownership of export oriented industries, granting of tax incentives to foreign mutual funds and investments in the stock market, creation of closed-end mutual funds, and reduction of taxes on dividends remitted abroad (Antczak 40-41). These measures along with a pegged exchange rate policy (i.e., the Thai currency baht was pegged to the dollar and its value rose and fell with dollar's value), and the large differential in interest rates provided comfort to foreign investors who came to Thailand in droves. "
Tags: Thailand, currency, crisis, globalization, Asia
Abstract The different characters in this play are all analyzed and looked at, and then compared to Laura, who is thoroughly analyzed herself. It shows how all the characters are like in little "glass bubbles" and do not interact with the world, yet despite this, their necessary interactions with each other are analyzed.
From the Paper "The characters in Williams's The Glass Menagerie are all living in their own world. They do not seem to come out of their own dream world, in which they have clearly found comfort and shelter. Especially Laura has great problems being a part of society, she, of all characters, has most clearly fled into a lonely fantasy world. In this essay I will compare the character of Laura to the other characters in the play."
Tags: literature, play, tennessee, theater, williams
