Krugman & Verhagen on Economic Bubbles

The well-known Noble prize winning economist, Paul Krugman, seems to be gaining more and more attention as a New York Times columnist than he had as a regular economist. Maybe in these times of unbridled admiration for fame and celebrities, Krugman should consider joining a reality show, if he wants to influence the world outside the U.S. and possibly outside our universe. Anyway, his latest column, This Age of Bubbles, questions why we've experienced so many economic bubbles since the late 70s. After the housing bubble in the U.S. and Western-Europe from a few years ago, before that the dot-com bubble, then the Asian bubble of the 1990s, and the real estate bubble (in the U.S.) of the 1980s, it seems now the BRICs with Brazil, India, and other emerging markets are hitting the proverbial economic walls.
Krugman:

"What’s going on? It’s a variant on the same old story: investors loved these economies not wisely but too well, and have now turned on the objects of their former affection. A couple years back, Western investors — discouraged by low returns both in the United States and in the noncrisis nations of Europe — began pouring large sums into emerging markets. Now they’ve reversed course. As a result, India’s rupee and Brazil’s real are plunging, along with Indonesia’s rupiah, the South African rand, the Turkish lira, and more."

After referring to the Federal Reserves policy of lowering interest rates and financial deregulation in the U.S. and around the world, Krugman concludes:

June Book of the Month: The Book of Balance

Cosimo's June Book of the Month is the The Book of Balance, by Yasuhiko Genku Kimura. A modern, visionary translation of the classic ancient text Tao Teh Ching by Lao Tzu, The Book of Balance will provide a foundation for peace, tranquility, and harmony to all who read it. It's the perfect read to start your summer off on the right note.

Yasuhiko Genku Kimura is the publisher and editor-in-chief of the VIA Journal, and chairman and president of Vision-In-Action, a non-profit organization promoting the development of creative thinking and visionary action. His other books include The Twilight Manifesto, Think Kosmically Act Globally, Virtues of Love, and The Twilight Club and the Creation of a Moral Community. He has also published numerous articles, essays, and translations on philosophy, transformational ethis, the philosophy of science, and business strategy. His business consulting and personal growth programs integrate a Socratic and Zen-like teaching style that stimulates participants' awareness of their self-knowledge and power of transformation. You can contact Yasuhiko online at his website or on his Facebook page.