chapter  9
Rhythms and Interventions: Studying the Ebbs and Flows of Bubbles
WithPaul Sheeran, Amber Spain
Pages 16

The presence of variables in the markets makes an exact science problematic. Politics, economics, society, technology, environmental, legal and cultural influences, as well as an emotional impact and accidental interventions from numerous sources shape its performance and volatility. The strength of the model by Cohen is that it recognises the successive and unregulated interventions in bubbles. Further research could be initiated to discern the depth of the relationship between investment bubbles and hurricane studies. The ebbs and flows in investment can be recognised in the swings in tastes for different kinds of investments. Despite the notable challenges in models created to make clear the progression of speculative activity, Cohen identifies several key phases in bubbles with two further phases that recognise debt deflation and base rebuilding. With reference to the literature pertaining to bubbles, various approaches will be considered to identify the specific features of speculative activity, which propel prices higher or deflate positions in sudden falls.