{"id":112689,"date":"2018-01-26T11:44:49","date_gmt":"2018-01-26T16:44:49","guid":{"rendered":"https:\/\/www.bates.edu\/news\/?p=112689"},"modified":"2018-07-27T14:38:03","modified_gmt":"2018-07-27T18:38:03","slug":"what-i-mean-when-i-say-paul-shea-and-bubble","status":"publish","type":"post","link":"https:\/\/www.bates.edu\/news\/2018\/01\/26\/what-i-mean-when-i-say-paul-shea-and-bubble\/","title":{"rendered":"What I Mean When I Say: Paul Shea and ‘bubble’"},"content":{"rendered":"

In most senses, a bubble is a pocket of gas, encapsulated by liquid.<\/p>\n

But for Associate Professor of Economics Paul Shea, bubbles are less tangible \u2014 and more dangerous.<\/p>\n

\u201cA bubble refers to an asset when its price is higher than what it is worth to someone who actually uses it,\u201d Shea says.<\/p>\n

\"\"<\/a>

Associate Professor of Economics Paul Shea<\/p><\/div>\n

The dot com bubble. The housing bubble. Tulip Mania<\/a> in the 17th-century Netherlands. For a time, investing in those industries could make you rich.<\/p>\n

But \u201clike other bubbles,\u201d Shea says, \u201cthese bubbles must eventually burst, and prices must fall.\u201d Cue plummeting stock prices, closing companies, a collapsed tulip market, the Great Recession.<\/p>\n

In 2013, Shea and two co-authors identified<\/a> another unfortunate bubble: In 2009 and 2010, \u201cpeople were accidentally buying worthless shares of bankrupt General Motors stock, because they thought they were shares of the new, reorganized firm.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

What do the Great Recession and Tulip Mania have in common? <\/p>\n","protected":false},"author":1005,"featured_media":112747,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_hide_ai_chatbot":false,"_ai_chatbot_style":"","associated_faculty":[],"_Page_Specific_Css":"","_bates_restrict_mod":false,"_table_of_contents_display":false,"_table_of_contents_location":"","_table_of_contents_disableSticky":false,"_is_featured":false,"footnotes":"","_bates_seo_meta_description":"","_bates_seo_block_robots":false,"_bates_seo_sharing_image_id":0,"_bates_seo_sharing_image_twitter_id":0,"_bates_seo_share_title":"","_bates_seo_canonical_overwrite":"","_bates_seo_twitter_template":""},"categories":[4,14],"tags":[9755,10116],"class_list":["post-112689","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-academic-life","category-faculty-staff","tag-paul-shea","tag-what-i-mean-when-i-say"],"_links":{"self":[{"href":"https:\/\/www.bates.edu\/news\/wp-json\/wp\/v2\/posts\/112689","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bates.edu\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bates.edu\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bates.edu\/news\/wp-json\/wp\/v2\/users\/1005"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bates.edu\/news\/wp-json\/wp\/v2\/comments?post=112689"}],"version-history":[{"count":4,"href":"https:\/\/www.bates.edu\/news\/wp-json\/wp\/v2\/posts\/112689\/revisions"}],"predecessor-version":[{"id":117359,"href":"https:\/\/www.bates.edu\/news\/wp-json\/wp\/v2\/posts\/112689\/revisions\/117359"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bates.edu\/news\/wp-json\/wp\/v2\/media\/112747"}],"wp:attachment":[{"href":"https:\/\/www.bates.edu\/news\/wp-json\/wp\/v2\/media?parent=112689"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bates.edu\/news\/wp-json\/wp\/v2\/categories?post=112689"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bates.edu\/news\/wp-json\/wp\/v2\/tags?post=112689"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}