Every landing we have had has been soft. A hard landing ends like Mad Max..
Is it possible for bubbles to bust softly?
- Thread starter maxitronixy
- Start date
From
http://www.investopedia.com/terms/s/softlanding.asp
"What Does Soft Landing Mean?
A term used to describe a rate of economic growth high enough to avoid recession, but slow enough to avoid high inflation. Investopedia explains Soft Landing
When the economy is growing at strong rate, the Fed will try to engineer a soft landing by raising interest rates enough to slow the economy down without putting it into recession.
Alan Greenspan, the former chairman of the Federal Reserve Board, was a master at the soft landing."
http://www.investopedia.com/terms/s/softlanding.asp
"What Does Soft Landing Mean?
A term used to describe a rate of economic growth high enough to avoid recession, but slow enough to avoid high inflation. Investopedia explains Soft Landing
When the economy is growing at strong rate, the Fed will try to engineer a soft landing by raising interest rates enough to slow the economy down without putting it into recession.
Alan Greenspan, the former chairman of the Federal Reserve Board, was a master at the soft landing."
I think the dynamics of leverage ensure that "bubbles" very rarely just peter out.
Bubble implies something distinct from "normal" oscillations around the long-term trend or average. Normal oscillations by nature resolve themselves more or less quietly. Problem is when everyone is long and levered 10-1 or more, not only are there no buyers on the sidelines, but a relatively small decline of 10-30% is enough to cause major havoc. Hasn't the entire "housing crash"/"mortgage crisis" been a matter of, at most, 10-15% of U.S. mortgages going into default, of which the banks can usually recover 50-plus cents on the dollar in foreclosure?
Bubble implies something distinct from "normal" oscillations around the long-term trend or average. Normal oscillations by nature resolve themselves more or less quietly. Problem is when everyone is long and levered 10-1 or more, not only are there no buyers on the sidelines, but a relatively small decline of 10-30% is enough to cause major havoc. Hasn't the entire "housing crash"/"mortgage crisis" been a matter of, at most, 10-15% of U.S. mortgages going into default, of which the banks can usually recover 50-plus cents on the dollar in foreclosure?
FredBloggs
Guest
no you dork!
bubbles go *POP*, not ______hisssss_____ - caused as everyone wakes up (may happen to you some day) and rushes for the door.
thats why they are called bubbles.
what ever next?
WRONG! GreenScam was the "purveyor of the notion" of soft landingl He was just as FULL OF SHIT AS OBAMA!!
Yes, It is called a controlled pressure release.
Akuma
Akuma
Interesting question.
Yes. Like the bubbles in yeast formation, bubble clustering
and intertwined economies derive support from and to one another.
Many of the "Central Banks of a Designated Land"
and/or "Government" pumps money back into many sectors of their economy and
attempt to soften market fundamentals and bottoms on a continuous basis.
I particularly prefer those moneys be put toward infrastructure or asset.
The government of China seems to be making significant internal purchases of goods manufactured and
mineral wealth, both of which are current and future buffers to support "Bubble Economy dynamics."
While it appears the FED and thr "Corporation of Washington DC" are pumping moneys into liquidity
sectors just building "felt" value like a con job versus the real value of just weights and measures.
And No. Perspective, location and preparation are the issue. A general market decline can be felt
due to several bubbles breaking their "ability to support" threshold. Some may feel no affect, others may experience
devastation depending if your in the areas affected and your preparation to ride it out.