The Bubble Triangle: A New Way to Understand Financial Bubbles

The podcast discusses a new concept called the bubble triangle, which offers a different perspective on financial bubbles. The bubble triangle consists of three components: fuel, oxygen, and heat. The fuel represents money and credit, the oxygen refers to the marketability of assets, and the heat signifies speculation. These components interact and contribute to the formation and growth of bubbles. Additionally, the spark that ignites a bubble can be attributed to new technology or government policy. The bubble triangle provides a framework for understanding the factors that contribute to the development of financial bubbles and their eventual collapse.