Bubble trouble spots to watch

13 October 2019 - 00:05 By TIM WALLACE

Bubbles are the bane of financial markets and economies. Overinflated prices funnel extraordinary levels of cash into surging assets, only to find they are built on sand. Prices tumble. Bankruptcies soar. Recessions beckon.

Subprime mortgages, the dotcom bust and the roaring stock market of the 1920s are famous examples. The South Sea Bubble of the 18th century and "tulip mania" in the 17th show that irrational markets have been with us for hundreds of years...

This article is reserved for Sunday Times subscribers.

A subscription gives you full digital access to all Sunday Times content.

Already subscribed? Simply sign in below.

Registered on the BusinessLIVE, Business Day, Financial Mail or Rand Daily Mail websites? Sign in with the same details.

Questions or problems? Email helpdesk@timeslive.co.za or call 0860 52 52 00.