Sunday, May 08, 2005

The Sinkhole Theory of Economics

"Here's a new economic theory to ponder: Economic bubbles can occur in two directions. One you can see, the other you can't. But the impact of both can be devastating.

We're all familiar with the classic bubble. It works something like a pyramid scheme. The first ones to invest in a new technology or a new idea get rich. That attracts others to invest, but they never reap the same kinds of rewards. They get caught, in effect, propping up a pyramid that becomes nothing but a shell for bad investments." More...


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