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Others argue that we're witnessing a commodity bubble.
And it is not only oil — we are experiencing a commodity bubble not seen since the 1970s and early '80s.
If there is a commodity bubble, as many argue, then it will eventually burst, and inflation is not much of a long-term threat.
Did a commodity bubble pop?Here's Paul Krugman commenting on the commodity price drop:I haven't seen this pointed out, but inflation expectations, at least as measured by spreads against inflation-protected bonds, have dropped sharply over the past few days.
Dhaval Joshi, an economist at BCA, a London-based research company, said: "A commodity bubble has deflated three times in the past 100 years: the first was after world war one; the second was after the 1980s oil shock; the third is happening right now".
Some are calling this a commodity bubble.
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Almost a year ago, a commodities bubble quickly ballooned and burst.
Earlier this year there were worries about a commodities bubble.
Cushion the decline in living standards with easy money now and you just move from a housing bubble to a commodities bubble.
Soaring oil prices outweighed positive earnings news yesterday, sending stocks skidding amid fears that the market is in the middle of a commodities bubble.
Food and energy prices fell for the month, and prices were sharply lower than last year, when the financial crisis deflated a commodities bubble that had lifted gasoline prices to $4 a gallon and sent the dollar to record lows.
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