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A physicist explains financial bubbles

Tobias Preis - Bubble Trouble

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Traditional economics cannot explain bubbles

Booms and busts are part of economic reality.

But traditional economic theory doesn't explain them.

What causes the bubbles that lead - inevitably - to spectacular market collapses.

When a stock market rises unsustainably, it can create a financial bubble that sooner or later will burst. Dr. Tobias Preis explains whether concepts from physics can be used to create a law describing exactly how such crashes occur. Preis founded Artemis Capital Asset Managemment and now focuses on quantifying fluctuations in financial markets.