This is a wonderful paper. My friend Dave Ingram wrote about the theory of Risk and Light, where risks grow in the dark and are only exposed once an event occurs that projects light (e.g., Madoff was only exposed when 2008 required cash flows from his clients). Higgins doesn't use the term bubble but finding leading indicators of a problem is the next step. I would like to see him describe a period where some of the characteristics of a SSC were present but did not eventually blow up. Check out his book on the financial history of the US too!
This is a wonderful paper. My friend Dave Ingram wrote about the theory of Risk and Light, where risks grow in the dark and are only exposed once an event occurs that projects light (e.g., Madoff was only exposed when 2008 required cash flows from his clients). Higgins doesn't use the term bubble but finding leading indicators of a problem is the next step. I would like to see him describe a period where some of the characteristics of a SSC were present but did not eventually blow up. Check out his book on the financial history of the US too!