After peaking through June-July 2006, home prices spiraled into free fall as the worst of a mortgage backed securities-fueled bubble exploded into a global financial crisis.
FORBES: Case-Shiller Home Price Index Officially Double-Dips, Goldman 'Cautiously Optimistic'
The financial crisis which began in 2007 was the aftermath of a housing bubble fueled largely by government incentives.
In other words, this is not so much a bubble (at least not a bubble fueled by unreasonable expectations of gain) as a supply squeeze.
In the late 1990s the seemingly boundless corporate spending on servers and computers in the heady days of the dot-com bubble fueled the growth of the semiconductor industry.
Say good-bye to our decadelong, China-fueled global commodity bubble.
Alan Greenspan, the former Federal Reserve Board chairman who has been criticized for keeping interest rates so low in 2003 and 2004 they fueled the housing bubble, testified earlier Wednesday that demand for loans to securitize, especially by Fannie Mae and Freddie Mac, were what inflated the bubble, not low short-term interest rates.
"The 90s bubble was fueled by investors' money being pumped into the economy and forcing it to rise without any real justification, " said Bob Ivins, the managing director of comScore Europe.
That stimulus, mostly in the form of fixed asset investments in infrastructure, followed by low interest rates, fueled a hard asset bubble that the Chinese government has been trying to pop since last year.
FORBES: Barclays Reiterates 'No Hard Landing' Call For China
Because reform will put a stop to a lot of the bad loans that fueled a debt-based bubble.
WHITEHOUSE: Signing the Wall Street Reform and Consumer Protection Act
But the Hong Kong government sees the tax as a necessary policy to protect the city's economy from an inflating property bubble -- fueled not just by foreign investment but also by low interest rates linked to protracted quantitative easing by the U.S. Federal Reserve and limited supply of new housing on the market.
By keeping interest rates at historic lows, however, his easy money fueled manias: first the Internet bubble and then the now-burst mortgage bubble.
The market had gotten over the tech bubble bursting and was being fueled by an overexpansion of another sort, in the housing market.
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