@article {Sullivan131, author = {Rodney N Sullivan}, title = {Taming Global Village Risk II: Understanding and Mitigating Bubbles }, volume = {35}, number = {4}, pages = {131--141}, year = {2009}, doi = {10.3905/JPM.2009.35.4.131}, publisher = {Institutional Investor Journals Umbrella}, abstract = {Asset bubbles and their subsequent bursts have been a part of capital markets since modern capital markets began to evolve some 300 years ago. Although each bubble environment has its own distinguishing characteristics, certain common elements persist over time as the key ingredients of market bubbles{\textemdash} financial innovation, the emotions and psychology of investors, and leverage. The author explores how these features present themselves in market bubbles and the ensuing market disruptions, and offers some suggestions for improving future risk management. Among the recommendations is a strong, yet flexible, oversight framework having the goal of identifying and containing areas of excessive economic risk. TOPICS: Financial crises and financial market history, in markets, exchanges/markets/clearinghouses}, issn = {0095-4918}, URL = {https://jpm.pm-research.com/content/35/4/131}, eprint = {https://jpm.pm-research.com/content/35/4/131.full.pdf}, journal = {The Journal of Portfolio Management} }