What are " boom and bust" cycles?
596528
Boom is when the economy is doing well and growing and bust is when the economy is doing poorly.
1130589
Peak oil\nEmerging industrial nations raise demand\nPrice gouging\nproduction slowdowns\ncollusion
1016348
Absolutely yes!\nWith all of the "special financing" that was done in this last boom, (interest only, negative am's, ARM's, 80/20's).  They all work if you are in and out quick, few years max, or in a boom market when everything is going up 20-30% a year.  When prices quit going up and are coming down, and interest is on the rise and people barely made the payment when the interest was low. LOOK OUT BELOW!!  \nThere is going to be a crash similar to the one in the early nineties, just wait and see.
318872
It isn't Bad. It is bad for people who wanted to borrow money - for example the government or home buyers. But it is good for people looking to invest money as it indicates that can get a higher returns. As for reading more into it - it indicates demand and hence either good (boom) or bad (inflation) - usually both in the end
1007275
1) Supply and Demand\n2) Yes\n\nTop 3 Answerer in Business & Finance. (Vote for me)
644443
Our economic policy is Nixonomics (Keynesian policy), so you can imagine that the result will be pretty much the same.  I expect inflation (currently observed in prices for both housing and raw materials like oil and metals), and over the longer term, some weakening growth (recession). In the days of Gerald Ford, it was called stagflation.  If we elect a responsible leadership that can control spending, we might be able to turn things around and forestall that slowdown, but sadly, I just don't see that happening.  Very few politicians on either side of the aisle are talking about responsible spending these days.  (OK, maybe they're talking about it, but they're sure not DOING it.)
117431
If you had a nickel for every time someone suggested that the market was close to collapse, you would have already retired -- there are a number of market pundits that suggest we're close to collapse for a variety of reasons - be it the size of the US deficit, a slowing China, debt to GDP levels - but just like the tech bubble seemed ripe for a fall -- back in 1998! -- it carried on for some time. Simply read as much as you can on the economy, get a feel for the cycle (ie. when things are good versus when things are bad) and get a sense for when it makes sense to take some money out of your investments. I personally suggest watching employment figures. When unemployment ticks up, it's a bad sign. The consumer is a key component to the strength of the economy as a whole. When jobs fail to be created - or worse - when jobs are net-net disappearing, this is a worry. A  very simple tenet, but one to focus on. Good luck.
1074302
There are cyclical theorists that have charted American history in 80-year cycles (I recommend the book "The Fourth Turning" by William Strauss and Neil Howe).  If their 80-year cycles hold true, then the U.S. will face another Great Depression/World War II-level crisis within the next 5-15 years.  Every time the U.S. faces a crisis like this, it runs the risk of bringing about the end of our nation (or at least as we know it.)  How long will Pax Americana last?  No idea, but we'll have our next challenge soon.
296789
First, you need to define 'goes bust'.  Even if the price went really high (say $10.00 per gallon), it would only be transient because: 1) people will adapt their behavior to reduce consumption (we saw this already at $3.00/gal.), 2) many alternative forms of energy will become price competitive, and 3) a lot more oil and gasoline will eventually be found and produced because it will be very profitable to do so.\n\nHistory repeats itself.  We had major fuel/energy crises in the 70's.  In 1979 I paid $1.069 per gallon; after inflation, that is over $3.00 per gal. now. And, my very economical economy car ( a very small 1976 Toyota pickup) got 'awesome' gas mileage of 18 mpg highway!  "Experts" then said there was only enough oil left in the world to last until the mid-90's (ten years ago!).  In the 70's most cars got about 10-12 mpg, now many get TRIPLE that!  Technology will triumph again.\n\nBest wishes!
1093007
I would pick up all of them, Say, "Yeah, I got a change cycle" then go to my blog and add 41 cents to my running tally of found money.  \n\nP.S. -- A change cycle is when you find a penny, nickel, dime and quarter all on the same day (like baseball players hitting for the cycle -- single, double, triple, and homerun in same game)
382854
Because that difference is converted into energy. That's what makes that big boom.\n\nE = mc^2\n\nThe mass that's left over follows the above Einstein equation.
237773
sounds like someone has an economics exam coming up. \nProbably has something to do with employment rates and consumerism.   the ability of the population to keep the economy rolling, by having positive cash flow.
487054
Look up papers by Didier Sornette (University of California at Los Angeles), who worked on this. He finds that bubbles grow by way of an oscillating function of which amplitude and frequency permit to predict the crash.\n\nOf course the function used was found by looking at past data, but he does give predictions as well.\n\nHowever, the last time I looked at this he predicted the current run-up to end in 2004 with a crash, which didn't materialise.
685194
based on supply and demand.  Too detailed to explain in a q&a.  If you're in school, take a finance and economics class.
652208
I'm in a economics class too, and they are things that are used to predict if the economy is going into a period of contraction or growth. Some examples are the stock market, the real GDP, prices, and sales.
575532
Well yes and no. Long story short it's possible because the US government is selling bonds to other nations, (more like extorting them to buy it, otherwise they will charge a very high tariff on all imports from that country)  and this allows a steady flow of cash into the economy.\n\nThis boom goes on until someone wisens up and demands the loaned money.  At which point, everyone who's borrowed money ends up actually having none, and this cause major and I mean MAJOR chaos.  Think this way, no one has cash. Everyone wants cash. But there is no cash.  Everyone is going to fall down like a domino.\n\nAnyway people call this "depression".  It's a result of living in decadence and buying everything on credit and assuming that tomorrow, your paycheck will be bigger.  Specualtion and greed supplies all the other necessity for a disaster.\n\nI really crammed about 10 books worth of info into a few paragraphs. I hope I got through to you.
756593
Recession is the opposite of inflation. When recession happens, expansionary policy takes place. Meaning, government spending decreases and taxes increase.