As a result, the biggest asset and credit bubble in human history is now going bust, with overall credit losses likely to be close to a staggering 2 trillion. Thus, unless governments rapidly recapitalize financial institutions, the credit crunch will become even more severe as losses mount faster than recapitalization and banks are forced to contract credit and lending.

In addition to the downturn in real estate, a broader bubble in consumer credit is now collapsing as the US economy slips into recession, defaults on credit cards, auto loans, and student loans will increase sharply. US consumers are shopped out, savings less, and debt burdened.

The cheap credit ushered in by the euro fed an inflationary economic bubble in southern Europe that burst when the financial crisis hit. Credit terms worsened abruptly, and what was left was the thoroughly overpriced rump of economies that had become excessively dependent on foreign financing.

Monkey Bubble

Frozen Bubble

Bubble Spotting

Bubble Trouble

By exploiting a record credit bubble to borrow against an unprecedented property bubble, American consumers spent well beyond their means for many years. When both bubbles burst, over extended US households had no choice but to cut back and rebuild their damaged balance sheets by paying down outsize debt burdens and rebuilding depleted savings.

America s Education Bubble

Monkey Bubble Arcade Game

Each country's a bubble.

Letting China s Bubble Burst

In the US, this has complicated the Federal Reserve s task. The Fed has been trying to slow demand growth and cool the housing price bubble to avoid inflation, but carry trade speculators have been easing credit.

NEW HAVEN You might think that we have been living in a post bubble world since the collapse in 2006 of the biggest ever worldwide real estate bubble and the end of a major worldwide stock market bubble the following year. But talk of bubbles keeps reappearing new or continuing housing bubbles in many countries, a new global stock market bubble, a long term bond market bubble in the United States and other countries, an oil price bubble, a gold bubble, and so on.

But the comparison is misleading, because 2007 was the peak of a credit bubble that led to a lot of wasteful investment. The Commission recognizes this in its supporting documentation for the Juncker package, in which it argues that the pre credit boom years should be used as the benchmark for desirable investment levels today.

Can you see the bubble?

The Great Emerging Market Bubble

Israel s Election in a Bubble

Frei Otto was starting to use foam bubble diagrams and foam bubble models to generate his Mannheim Concert Hall.

The weak real economy and job market, together with high debt ratios, suggest the need to exit monetary stimulus slowly. But a slow exit risks creating a credit and asset bubble as large as the previous one, if not larger.

And just like that, the bubble burst.

The Gold Bubble and the Gold Bugs

Credit Where Credit is Due

Brown, who became prime minister in 2007, let spending and borrowing rip, so that when the global crash hit Britain was already suffering from a structural fiscal deficit and a credit bubble. The country was worse prepared for disaster than most others.

Indeed, as the effects of stimulus programs wear off, new weaknesses are emerging, such as persistent inflation in India and credit misallocation in China. Given this, the notion that emerging economies will recapture the growth levels of the bubble years seems farfetched.

We had the bursting of the tech bubble.

A new bubble will replace the old one.

Maybe the word bubble is used too carelessly.

Every bubble is a country. The size is population.

The size of the bubble here is the population.

And the size of the bubble is the population.

So we basically turned the box into a bubble.

So, what should this brief Palin bubble teach us?

So we live on the most fragile, little soap bubble you can imagine, a very sacred soap bubble, but one that is very, very easy to affect.

In fact, such measures would only exacerbate the flaws in the eurozone s structure. They would sustain false relative prices the result of the inflationary credit bubble in the south that formed after the euro s adoption that are preventing the euro s southern European countries from regaining competitiveness.

You can see how China is the red, big bubble.

We can say, Well how fast does the bubble burst?

In my view, bubbles are social epidemics, fostered by a sort of interpersonal contagion. A bubble forms when the contagion rate goes up for ideas that support a bubble.

But it was a bubble and a highly leveraged one at that. While periodic bubbles may be unavoidable, and no bubble is without consequences, a highly leveraged bubble tends to cause far more damage, owing to its impact on the real economy and the duration of the deleveraging process.

2D game inspired in Bubble Bobble, Snow Bros and Tumble Pop

And look here when I take you into my bubble graphs.

Credit

Credit

Low interest rates eventually jump started the expansion through a house price bubble that supported a debt financed consumer spending binge and triggered a construction boom. Meanwhile, prolonged low interest rates contributed to a chase for yield in the financial sector that resulted in disregard of credit risk.

That's the dot com bubble. This is the Lehman Brothers doorstep there.