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Why, then, are both candidates proposing to further inflate a bubble that's about to burst?
A debt-fuelled rush of individual investors helped inflate a bubble on China's main exchanges but it burst last summer.
And if inflation returns, property will be a better hedge than conventional government bonds.Eventually, such logic will inflate a bubble, of course.
Because American banks can raise money cheaply through federally insured deposits, there has always been a concern that by directly owning any kind of business, they could help inflate a bubble.
That helped inflate a bubble that popped in 2007-08, buthehe state still forecasts that the population of the San Joaquin Valley will more than double to 8.2m by 2060.
Mr. Feldstein said that using such a "hyperexpansive" interest rate policy could inflate a bubble in stocks and other assets and that popping a bubble could well destabilize the economy.
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If the housing market still has yet to hit bottom, the proposal will simply attempt to re-inflate a bubble that should not have been blown in the first place.Greg Mankiw illustrates the potential pratfalls of fiscal stimulus.
In 2010-11 venture capitalists lavished cash on weak e-commerce firms, inflating a bubble.
The result was to deceive investors, while inflating a bubble that burst with disastrous consequences.
Instead, much of that fallow cash has found its way into property, inflating a bubble.
One could retort that valuations from the 1980s and 1990s are irrelevant because central banks were inflating a bubble.
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