Do stock market bubbles exist? David DeRosa, author of “Bursting the Bubble: Rationality in a Seemingly Irrational Market,” discusses some of the most famous bubbles – from Dutch Tulipmania in the 1630s to the Dotcom bubble of the late 1990s – and shares his conclusions on whether speculative bubbles exist in the stock market.
The Take 15 Series is a collection of illuminating, short conversations with noted economists, best-selling authors, leading researchers, and successful practitioners on topics ranging from geopolitics and whistleblowing to irrationality and outlooks.
Episode Transcript (PDF)
Topics discussed:
1:35 David talks about the journey of writing his book
3:55 Are there no bubbles?
7:31 If they’re not bubbles, what do you call them?
8:48 Why David believe the Dutch Tulipmania was not a bubble
11:32 John Law
14:17 David taking issue with some of the most famous people in the field, specifically Robert J. Shiller
21:40 David talks about bitcoin
24:35 Is there a bubble brewing in NFTs?
26:25 Explaining the Dotcom and housing “bubble”
30:35 Wrap-up questions
- Ray of sunshine question: one positive long-lasting change David hopes to see as a result of the pandemic
- One item David would take with him on a NASA flight
- Flight v. Invisibility?
Related articles and links:
- Monograph: Bursting the Bubble: Rationality in a Seemingly Irrational Market
- The book "Extraordinary Popular Delusions and the Madness of Crowds" by Charles Mackay
- Book of photographs from Ancient Egypt