Toronto's insane real-estate bubble is finally bursting

[Quinquennial]

@tlwest

Bubbles are real (and in fact have been generated in laboratory conditions - it seems part of the human psyche), but what defines a bubble is the sudden collapse, by which point its already too late.

Actually, you can detect bubbles earlier than that, at least in well understood markets. If you have grasp on the supply and demand, a bubble will defy the expected price and continue to climb in spite of changes in supply going up (to cash in on the inflated price) or demand going down (because the price just isn’t worth it).