RealEconTV

Business news without the bullshit

A physicist explains financial bubbles

Tobias Preis - Bubble Trouble

Subscribe to RealEconTV

Your e-mail address is kept absolutely private
We make it easy to unsubscribe at any time

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.