When were the last destabilizing asset bubbles?

When were the last destabilizing asset bubbles

1.  When were the last destabilizing asset bubbles?

2.  What are the advantages of “war game” exercises to address possible problems in the economy? What are the weaknesses of these exercises?

3.  Why are interest rates “a blunt instrument” for stopping bubbles?

4.  The article states that central bank officials would “feel an urgency to act only if they believed the commercial real-estate market could suffer a sharp reversal that destabilizes the financial system or hurts the U.S. economy.” Why wouldn’t the Fed act any time they suspect a bubble has formed in some type of asset?

http://www.wsj.com/articles/as-commercial-real-estate-prices-soar-fed-weighs-consequences-1449885225

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Asset price bubbles refer to situations where the market price of a particular asset deviates explosively and asymmetrically from the fundamental value attached to it. Asset price bubbles mainly emerge from the underdeveloped segments in the financial markets.  They are characterized by high trading volumes and high volatility of prices. For instance, the buyer of assets attains the right to resell it…..

APA

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