On the other hand, those policies, years later, would be blamed for stimulating the housing boom that eventually led to a bubble that burst.
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We can't go back to a bubble-and-burst economy based on reckless speculation and spending beyond our means, where a relative few do spectacularly well while the middle class loses ground.
Partly, perhaps, because of the third popular criticism of our bubble thesis: that it is too risky, both economically and politically, for a central bank to prick a bubble by raising interest rates.
This is commendable, especially if it encourages bankers and traders to become less inclined to repeat the errors of the past, learn how to recognise a bubble and remember that what tends to follow a boom is a bust.
The point being that generally, a catalyst is needed to pop a bubble.
Over-exuberant expectations about profits, allied with an artificially cheap cost of capital thanks to a stockmarket bubble, encouraged firms to over-invest.
Roger Law, who with Peter Fluck designed the caricature puppets for the show, said the purpose of the show was to lance a bubble every week, and to educate Britons about what the government was doing in their name.
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Two sections packed with cheering Shockers fans provided all the encouragement necessary for a team that didn't win the Missouri Valley Conference tournament and was thought to be a bubble team for an NCAA berth.
Instead, it argues for acting pre-emptively to prevent a bubble inflating in the first place as the Bank of England recently tried to do by raising interest rates in response to rising house prices, even though inflation was below its target.
Even the 10 year Treasury at a yield of 1.50% or 1.85% or 2% looks to be a bubble since the Fed itself is acquiring two-thirds of the newly marketed government debt alongside accumulation from pension funds, insurance companies, clearing houses and family offices.
And to do that, as Paul McCulley of Pimco put it, Alan Greenspan needs to create a housing bubble to replace the Nasdaq bubble.
Eventually, rates heated up enough to pop a bubble that, in hindsight, looks ridiculously inflated.
Crazy enough to be a bubble, says John Makin, an economist with the American Enterprise Institute.
First, the central bank must be able to identify a bubble in the making.
Third, central banks must know the right monetary policy to deflate a bubble.
To spot a bubble in advance requires a judgment that hundreds of thousands of informed investors have it all wrong.
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Think back to last March if you dare, the equity market had collapsed thanks to a housing bubble and credit crunch.
Employee John Spragg recounts the story of one customer who wanted the color of his Bentley to match a bubble-gum wrapper he had saved.
Not long ago, hedge fund billionaire David Tepper indicated the Fed needed to taper its QE program in order to avoid a bubble in equity markets ala 1999.
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So although the disk, likened to a cartoon bubble or Mickey Mouse ear, only amplifies sound by a maximum of 10 decibels, the intelligibility of that sound is enhanced.
The real blame, however, would lie in the fact that it did not raise interest rates by much more last year, to prevent a bubble in the first place.
Amann said although the increase in household debt is unlikely to cause a bubble, there is a chance investors could be spooked with the crisis in Europe and the U.S. still causing global pain.
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The argument against Mr Greenspan is that it would have been better to seek to prevent a bubble inflating in the first place, even if that meant raising interest rates before consumer-price inflation took off.
When we pause to examine a thought bubble, we can use our brain to layer logic on top of the emotion.
The Harvard physicist Russell Seitz wants to create what amounts to a giant oceanic bubble bath: bubbles trap air, which brightens them enough to reflect sunlight away from the surface of the earth.
These deposits were then used to inflate a domestic property bubble, to fund Greek corporate loans and to buy large quantities of Greek government bonds.
According to a new study, the language of financial analysts and reporters becomes increasingly similar leading up to a stock market bubble.
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