The result of cheap money and government mis-direction capital was an enormous bubble followed by 20 years of stagnation.
Over-exuberant expectations about profits, allied with an artificially cheap cost of capital thanks to a stockmarket bubble, encouraged firms to over-invest.
The figures are based on the Nationwide's own mortgage data, and show less of a bubble in the capital than Land Registry figures released on Wednesday which indicated house prices in London had risen by 7% in the year to the end of October.
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Many private homes, which sprang up all over the capital during the years of the "bubble economy, " are only partly filled because they are either too expensive or simply unsatisfactory.
Recovery requires transferring accumulated capital out of residential real estate, particularly where the bubble was most pronounced.
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The more he cuts interest rates to boost liquidity in the capital markets, the more he risks reinflating the stockmarket bubble.
First, the dot-com bubble burst, taking with it the inflated capital-spending plans of everybody who had been hoping to make a buck off of it.
South Africa, with a strong economy, provides attractive fixed-income opportunities while India, with a massive need for infrastructure investment, is a hard market to access given relatively under-developed capital markets. (Read: No Credit Bubble In Brazil, Just Dangerous Consumer Debt Burden).
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Same with the over-allocation of capital to housing 2001-2007 which ended in the bubble that got us to this frustrating spot. psperry wants Bernanke to raise short-term interest rates slightly in order to crack oil and gold and food prices so that we can start over from a worse place and lead up to another boom.
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Comerica began amassing its stake in Munder Capital in the 1990s and rode a wave of success during the tech bubble, only to get burned by writedowns when the bubble burst.
The two cofounded HRJ Capital LLC in 1999 and showered capital from the likes of Peyton Manning and Barry Bonds on startups at bubble-era valuations only to watch their fund implode ten years later.
European venture-capital firms lost money during 2000-10 after the bursting of the dotcom bubble.
Nevertheless, despite much talk of an overheated venture capital environment, valuations at all stages remain well below those during the Internet bubble.
The college bubble is not big enough already, and government should continue to distort capital markets towards artificially high levels of college expenditures.
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Distressed debt investors will have to adapt to a surging equity market and a bubble in high-yield loan markets, finding themselves pushed down the capital structure in search for yield.
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The last time I was here, we were embedded in the Green Zone security bubble of the African Union peacekeeping operation at the edge of the Somali capital, with its Ugandan and Burundian troops, its heavy mortars and armoured convoys.
Over a longer time frame, from the start of the bubble to the present, only a handful of the big firms have delivered capital gains for their investors.
Thanks to the bursting of the housing bubble in 2008, the US is currently ranked as the best place for capital appreciation in the world real estate markets, according to Real Capital.
In America and other former bubble economies, household debts are worryingly high, and banks need to bolster their capital.
The bursting of the housing bubble has led to hefty credit losses: most Western financial institutions are short of capital and some are insolvent.
Before the Internet bubble burst, such deals were a common way for small tech companies to raise capital without issuing a lot of potentially dilutive shares.
Until the financial incentives bubble is popped, we can expect mis-allocations of financial, real and human capital to continue.
In the late 1990s, coincident with the Internet bubble, federal revenues from the progressive income tax, spurred by the enormous realization of capital gains and Wall Street bonuses, grew much faster than GDP, rising briefly above the long-run 18% average to more than 20% before the bubble burst and the stock market crashed in 2001.
This, according to Treasury sources, would make it impossible for the FPC to force British banks to hold more capital, as a protection against losses and to slow down lending, as and when the FPC spots a new bubble, such as a renewed and worrying boom in the housing market.
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