The H,Q derivative approach taken by The Bubble Index was developed from the paper, Generalized q-Analysis of Log-Periodicity: Applications to Critical Ruptures by Wei-Xing Zhou and Didier Sornette. This approach has its origin in studying the critical ruptures arising in pressure storage tanks. Pressure and LPPL Oscillations are connected. This implies the existence of some sort of pressure build-up which occurs in financial markets which create LPPL Oscillations. What is this pressure mechanism?
I wonder if The Bubble Index (and LPPL Oscillations in general), might be measuring directly/indirectly the Vernadskian “pressure of life” exerted by individual social groups of H. sapiens on the biosphere. This scale-free “pressure of life” exerted by these groups of H. sapiens on the environment builds over time, until it reaches a critical point when the system ruptures. A crash in wealth and a shock to economic growth occurs to relieve the pressure which inevitably results in a depression/recession as the “pressure of life” exerted by H. sapiens begins to find a new state.
Growth is a double edged sword – creating pressure on the biosphere while increasing the prosperity of H. sapiens in aggregate. However, if this pressure can now be directly/indirectly measured, the interaction between H. sapiens and the biosphere can be engineered. It is possible that the prosperity of H. sapiens can be designed to increase with a simultaneous reduction in pressure exerted on the biosphere.