bubble cycle

diaxlna

Senior Member
Galician & Spanish - Spain
Hi, I'm reading a news article which title is "Vote on world's next megabubble"

my question is what does bubble cycle exactly means in this context:

" (...) there will and must be many more such booms, for without them the U.S. can no loger function. The bubble cycle has replaced the business cycle."

I think that it's a metaphor to explain what's happening in the U.S. nowadays. Before this crisis, in the U.S. there was an economic cycle which had ups and downs, but now, what's happening, (and thats why the business cycle is being replace by the bubble cycle) is that the cycle reaches its maximum and then exploits.

That's my guess (If you could get anything out of what's up there...)

thanks!! and please, correct any mistake you find!
 
  • bibliolept

    Senior Member
    AE, Español
    Cycle would refer to a business/economic pattern of "boom and bust," of feverish economic activity and growth followed by a slowdown.
    It can also refer to the rapid appreciation of assets or the value of stock that is then followed by a drastic reduction in their value.
    A "bubble" is an inflation in the selling price of, for example, real estate. When the "bubble" breaks or pops, the prices drop dramatically. The entire process could be called a "bubble cycle."
     

    diaxlna

    Senior Member
    Galician & Spanish - Spain
    so, in the same text, the reference to a bubble-blowing machine is a metaphor? I'll give you more context:

    "(...) we're told that the next bubble is already there. "alternative energy", says Janszen. In his new "perpetual bubble-blowing machine" theory this means that biofuels, solar, wind, nuclear, hydroelectric and geothermal energies are the new bubble, until it peaks and "reatively destructs" aroun 2013."

    I don't really get that paragraph, because supposedly, the alternative energies are not the ones that are contributing to this economic "bubble".. aren't they?

    what do you think??

    THANKS!!
     

    bibliolept

    Senior Member
    AE, Español
    This man is suggesting, by describing a "perpetual bubble-blowing machine," that there will always be--and that we will always need, perhaps--new bubbles. After one pops, another one must appear. Thus, the next bubble is investing in "alternative energy" companies and technologies; that one will eventually collapse and some new area will be the next "hot opportunity."
     
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