Thursday, September 27, 2012

Bubble Formation And Bubble Bursting in Commodities: A Flowchart

Since it is now quite clear that despite calling for even endless QE, the namely bubble formation, and its counterpart, bubble bursting in commodities cycle.....decided to explain just how these two fundamental events occur, with flow charts so simple, even an Economics PhD can get it...

-Umesh Shanmugam

Bubble Formation: start at the bottom left...

Bubble Bursting: ...and end with a 'debt crisis' and a 'rush for the exits'

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