Thanks to Barry for passing this along.
In China, five of the world’s ten largest buildings are now under construction. Look out below!, says Vikram Mansharamani, a financial services veteran and part-time academic who has developed a multidisciplinary framework for sniffing out bubbles.
Mansharamani is author of a new book, BoomBustology: Spotting Financial Bubbles Before they Burst. The book is based in part on a course that Mansharamani, who has two master’s degrees and a Ph.D. from the Massachusetts Institute of Technology, has taught at Yale, his alma mater. While many analysts focus on a single causal factor (Fannie Mae caused the housing bubble! Snake-oil salesmen from Silicon Valley fomented the dotcom bubble!) Mansharamani takes a multidisciplinary approach. Borrowing from analysts in fields such as economics, psychology, and biology (bulls and bears, it turns out, act a lot like swarming ants), Mansharamani has developed a series of lenses through which to examine market behavior. Systematically examining outbursts of mania, from Dutch investors’ infatuation with Tulips in the 1630s to Florida real estate in the 1920, can help sniff out bubbles.