however, follows a certain set of 5 criteria: asset bubble, cheap and abundant supply of credit, leveraging, expectation changes and margin calls. Roubini says most crises begin with an asset bubble. (Roubini, 17). This is where a particular asset rises far above its underlying fundamental value. “This kind of bubble often goes hand in hand with an excessive accumulation of debt, as investors borrow money to buy into the boom. Not coincidentally, asset bubble are often associated with excessive growth…
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