Goldman and bubbles
Blaming Goldman Sachs for every bubble sounds silly. But is regulation the solution? Maybe, or maybe not — Bubbles also happens in tightly regulated market, say, in China.
Maybe what we need is smart regulation. Or, bubble is just an integral part of capitalism — As long as there are animal spirits and human greed, bubble can never be rid of.
Ten years after dot.com bubble
Comparing market performance after big crashes…
(click to play video; source: FT)
The pattern is the market usually go on sideways for a VERY LONG TIME after big crash. This offers a sober lesson for those who got too excited in predicting a robust recovery.