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It seems that the most widespread technical term for the (yet "mysterious") processes that preclude financial crisises is overheating. For example, there is much concern at the moment about overheating in the Baltic markets. Here is a global news report:
Is Latvia's economy following in Iceland's overheated footsteps?

WARSAW: Latvia is giving some emerging market investors a sense of déjà vu.

A year ago the economy of tiny Iceland went into a skid. It was a wake-up call for traders who chased high yields around the globe with little regard to economic risks.

Now, another small, red-hot economy in Europe's cold north is in the spotlight, and markets are taking a hard look at its peers for signs of trouble brewing elsewhere.

The verdict is that many show similar worrying symptoms -- an unsustainable pace of growth fueled by booming consumption and credit, high foreign debt, surging wages, current account deficits topping 10 percent of gross domestic product and low currency reserves.

[Danske Bank] analyzed 11 "vulnerability indicators" for the 10 European Union members from Eastern Europe, putting Latvia and its neighbors Estonia and Lithuania, as well as Romania and Bulgaria, in the red danger zone.

The booming Slovak economy got a yellow warning light.

The process is admittedly enigmatic, but they have vulnerability indicators. Just do a Google search on "overheating vulnerability indicators", and you will get many PDF articles returned on the stuff.

How much common or different is between these three terms?

  1. Overheating
  2. Financial bubble
  3. Minsky's Ponzi financing

Is "overheating" just a less scary euphemism for the same thing? Are we having a global financial warming?!
by das monde on Fri Mar 23rd, 2007 at 02:16:40 AM EST

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