Defining terms in Bubbleconomics

I wanted to take a shot at defining some Bubbleconomics terms:

  • Bubbleconomics: The study and investigation of economic bubbles, their characteristics, their causes, and especially the hypothesis that the entire global economy is an economic bubble.
  • Economic bubble: An economic condition under which untoward optimism leads to an inflation of value of key commodities and assets.
  • The Big Bubble: The overall global economy viewed as an economic bubble, fueled by bubbling optimism and the assumptions that rapid growth is sustainable and an affluent lifestyle is feasible for many people.
  • Bubbling optimism: An overly optimistic attitude on the part of large numbers of economic stakeholders, leading to an economic bubble.
  • Bubble blindness: The inability of many stakeholders to recognize an economic bubble while it is taking place. Under the influence of bubble blindness, stakeholders maintain a “bubbling optimism,” invest more in the bubble, and thus make it worse. (See “Disaster myopia in the economy.”)
  • Personal bubble: The condition of an individual stakeholder (whether a major or minor player or simply a citizen/consumer) during an economic bubble, consisting of all of the forces and attitudes that keep the person immersed in the bubble and continuing to manifest personal behaviors that contribute to the expanded condition of the bubble. From the individual point of view, the stakeholder might be simply trying to maintain a reasonably comfortable and sustainable lifestyle.

 (All of these definitions need work!)

AB — 6 March 2009