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If financial innovation fuelled the bubble, so it will exaggerate the bust.That leads to the critics' third point: that far from enhancing economies' resilience, modern finance has added to their instability.
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Why not halve the £600,000 upper limit of George Osborne's Help to Buy scheme, to stop subsidised mortgages fuelling the bubble?
This, in turn, pushes rents up by artificially inflating demand, especially just before the start of the school year, making buy-to-let investments more attractive and buy-to-let mortgages easier to secure – fuelling the bubble further.
The first two failures fuelled the housing bubble.
And he tried five years ago to curb the reckless loans that fuelled the housing bubble.
Record low interest rates of 0.5 per cent since 2009 have fuelled the housing bubble and may cause havoc when they rise, hitting borrowers with higher rates to pay back each month.
Many economists believe that financial innovation, including easier access to credit, is one reason for the "Great Moderation" in the business cycle in the past few decades.Still, in the light of today's bust that welfare calculus needs revisiting, not least because broader access to credit plainly fuelled the housing bubble.
That fuelled the global credit bubble.
That was the kind of scam – then entirely legal – that fuelled the Dubai property bubble from 2002 (when foreigners were first allowed to buy there).
In the 1990s he founded a startup in the Bay Area and drank the Kool-Aid that fuelled the first internet bubble.
Facebook's decision to pay so much money for a firm that has, as it happens, no revenue whatsoever smacks to many of the insanity that fuelled the last tech bubble.That sense of déjà vu was reinforced by news that Facebook's bid came shortly after Instagram had closed a funding round with a bunch of venture capitalists that valued it at $500m.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com