From the book Manias, Panics and Crashes. Bubbles hop around a connected economy, they spiral.
Channel Theory explanation:
The excess liquidity needs a production system for the traders, a multi-stage investment pass through that collects dimes and invest dollars, the Corridor Hypothesis. The trade system is stuck trying to find the wholesale investment that matches the trading production system output. We can call it a spectral constraint, they need to find a particular -iLog(i), investment sequence to match some external restriction, generally the yield curve restricting their investors.
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