I don't follow your asset bubble story, Tony. Let's assume that the
asset is a share of stock. You seem to be saying that an asset bubble
can exist without the bulls actually buying the asset. Is that what you
have in mind? If not, where do the bulls get the money to buy it? And
where does the money go when the bulls become bears? Your story seems
incomplete. More importantly, now that I think of it, if the asset
bubble is merely a book entry and not something real, how does its
bursting affect aggregate demand or aggregate supply?
Pat Gunning