Sustaining Goa's real estate bubble
Goa, May 29 -- PLASTINO D'COSTA An economic bubble usually occurs when an asset's price soars past its intrinsic value, driven primarily by speculation rather than fundamentals. Elevated prices might remain high for long periods, but eventually these prices, because they are detached from reality, inevitably correct when reality sets in, leading to a rapid price con traction or in capital markets lingo, the 'bursting of the bubble'. Goa has been going through a real estate upsurge in recent times and while prices might have hit a plateau in some areas and price correction has set in other locations, the bubble has by and large been kept from bursting through artificial means. Free markets usually do not tolerate asset bubbles for too long...
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