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Investment Bubbles – Forest Fires of the Economy?

May 10, 2007

Slate has a fascinating article on the positive impact that investment bubbles have on the economy.

Money quote:

"The process of growth and innovation doesn’t end when a bubble bursts.
The Internet wasn’t unplugged and shut down in 2002. In fact, once you
gain a little historical distance from bubbles, it is clear that some
bubbles—some, not all—leave behind something that is a little bit
boring but extremely useful: infrastructure. The bubbles that have left
behind commercial infrastructure have been incredibly important
contributors to America’s remarkable long-term economic performance."

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