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Daily Archives: March 10, 2010

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.