Easy Money Creates the Most Dangerous Bubbles

Economists increasingly recognize the role debt plays in financial disasters.

Don't get caught in one.

Attila Kisbenedek / AFP / Getty Images

Economists finally seem to be recognizing what most people have long considered obvious: Overconfident investors can drive the prices of everything from tulips to Chinese stocks far above their intrinsic value, leading to busts that can cause lasting economic damage.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.