Saul Eslake

There have been ‘bubbles’ in property markets in many countries, including Australia, in recent years; and there has also been a massive bubble in the global credit markets accompanied by the same degree of ‘irrational exuberance’ that was on display during the ‘tech bubble’ on stock markets in the 1990s. While ‘bubbles’ can create massive wealth for the astute and the merely lucky, others miss out; and the unwise and the imprudent who are left standing when the music stops can end up being massive losers. We are seeing that right now with the end of the global credit market bubble triggered by the meltdown in the subprime mortgage market.

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