Nachfrage - Der Interview-Podcast von Andreas Sator #10 Der Mann, der Krisen riechen kann: Markus Brunnermeier
Aug 28, 2017
Markus Brunnermeier, an economist from Bayern living in the USA, is renowned for his insights on financial bubbles and crises. In the discussion, he shares his thoughts on the challenges of valuing assets amid rampant speculation. He contrasts the innovative potential and risks of bubbles, referencing historical events like Tulip Mania. Brunnermeier also dives into the volatile world of cryptocurrencies, emphasizing the importance of informed investment. Plus, he critiques media influences on market perceptions and offers accessible book recommendations for curious minds.
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Understanding Financial Bubbles
- A bubble exists when a price exceeds the fundamental value of an asset.
- Determining fundamental value is complicated because future dividends are uncertain and perceptions vary.
Credit Bubbles Are More Dangerous
- Credit-financed bubbles, like housing bubbles, pose significant risks to the economy.
- Non-credit-financed bubbles related to innovation, such as internet bubbles, can be less problematic.
Crypto Bubbles and Fundamental Value
- Cryptocurrencies like Bitcoin may form bubbles, which are sometimes necessary for technological adoption.
- Bitcoin’s price seems very high, but its fundamental value is hard to prove.