[image source: https://www.forbes.com/sites/garymishuris/2020/08/01/5-bubble-signs-that-should-make-you-cautious/?sh=2d383738672e]
Question: What can we do to prevent future bubbles? (source: @leighwelch)
Response: I don't know if we can truly prevent bubbles in our economy. I think there are ways we can mitigate damage and reduce the costs and falls within the market, but overall, I think that the creation of bubbles are inevitable, especially in a capitalistic economy like what we have going on. We can create safety guards and put up walls to help prevent bubbles in certain markets (real estate, banking) but we cannot prevent them over all, especially in a market like the one we have right now. I think regulation could help prevent these bubbles, sort of how we have created regulations in response to the banking crisis and the housing one. Also, I think being open and honest about the economy is something the government can do to help ensure that no one makes uneducated decisions. Truthfully, I think that it's less important to try and ensure that no bubbles happen ever and more important to try and prepare for them, to help mitigate the damage done by anything bursting, and to create safety nets that can protect against depressions and financial crises. It's harder to control a market than it is to prepare for the failing of said market so I think that is the best way to go about it.