{"id":225621,"date":"2025-11-22T01:03:19","date_gmt":"2025-11-22T07:03:19","guid":{"rendered":"https:\/\/lifeboat.com\/blog\/2025\/11\/opinion-a-bursting-bubble-could-indeed-be-painful-in-the-short-term"},"modified":"2025-11-22T01:03:19","modified_gmt":"2025-11-22T07:03:19","slug":"opinion-a-bursting-bubble-could-indeed-be-painful-in-the-short-term","status":"publish","type":"post","link":"https:\/\/lifeboat.com\/blog\/2025\/11\/opinion-a-bursting-bubble-could-indeed-be-painful-in-the-short-term","title":{"rendered":"Opinion: A bursting bubble could indeed be painful in the short term"},"content":{"rendered":"<p><a class=\"aligncenter blog-photo\" href=\"https:\/\/lifeboat.com\/blog.images\/opinion3.jpg\"><\/a><\/p>\n<p>But what if we\u2019re in a \u201crational bubble\u201d that, unlike other big speculative manias in history, takes our economy to a fundamentally better place?<\/p>\n<p>I\u2019m borrowing the phrase \u201crational bubble\u201d from conversations with a Nobel laureate in economics, my friend A. Michael Spence. Bubbles seem by definition irrational. They grow as investors \u2014 often hostage to exuberant, herd-like behavior \u2014 push valuations well beyond anything warranted by the fundamentals on the ground.<\/p>\n<p>However, the A.I. excitement, as seen in the blowout <a class=\"\" href=\"https:\/\/www.nytimes.com\/2025\/11\/19\/technology\/nvidia-earnings.html\" title=\"\">Nvidia earnings<\/a> on Wednesday, rightly reflects the potential transformation of the entire economy. It is economically rational to risk losing everything on several bets if just a few can deliver a thousandfold return, which some A.I. investments almost certainly will.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>But what if we\u2019re in a \u201crational bubble\u201d that, unlike other big speculative manias in history, takes our economy to a fundamentally better place? I\u2019m borrowing the phrase \u201crational bubble\u201d from conversations with a Nobel laureate in economics, my friend A. Michael Spence. Bubbles seem by definition irrational. They grow as investors \u2014 often hostage [\u2026]<\/p>\n","protected":false},"author":715,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39,6],"tags":[],"class_list":["post-225621","post","type-post","status-publish","format-standard","hentry","category-economics","category-robotics-ai"],"_links":{"self":[{"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/posts\/225621","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/users\/715"}],"replies":[{"embeddable":true,"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/comments?post=225621"}],"version-history":[{"count":0,"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/posts\/225621\/revisions"}],"wp:attachment":[{"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/media?parent=225621"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/categories?post=225621"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/tags?post=225621"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}