So, I was looking over some old notes about bubbles from a previous class.
My notes said:
p(1-π) --> P(t+1) collapses to zero
I read my bad handwriting as:
p(1-π) --> P(t+1) collapses to zen
Basically this is the probability that the bubble associated with a certain asset (stock share, beanie baby, tulip, housing) will burst in the next time period.
Imagine if instead of the housing bubble bursting in 2007, it had just gone to zen. I like my way better.
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