Yeah possibly passive, another bubble. But I think that we'll have to wait for a long long time to see another bubble like the ones that are popping now.
There are more things to cause a bubble than interest rates. The policies that Greenspan over saw - he admitted that he was wrong - are gone. Laissez faire is dead.
As I've said elsewhere, you can implement policy that will stop a bubble growing; but you can't implement a policy that will stop deflation.
Greenspan did nothing to stop the bubbles growing and this is the only thing that their policies could definately affect.
Now that the bubbles are popping, for policies to work and prevent more bubbles bursting or further deflating, authorities must rely on people's behaviour for their policies to work. But its clear that people have severly cut their borrowing.
Central banks missed their only real opportunity - which was at the start of the bubbles - now those that inherited the problem must pray for a miracle.
