A different sort of limitation of liability

Asset bubbles happen when a surplus triggers the need for a repository to store the excess financial capital it had generated. 

In some cases that repository is the rise in the price and demand for equities, in other cases it is in the increase in the amount of indebtedness in the society. Surpluses of financial capital need corresponding debtors to use the capital and to owe it going forward so they, in effect, become storage units for the surplus. 

Shemittat kesaphim restrictions make it so that debt cannot serve as a storehouse of surplus financial capital for longer than seven years. It's a different sort of limitation of liability. 

The asset bubble is the result of the use value of the asset being overwhelmed by the exchange value. It's like what happens when a stock qualifies for an IPO. 

• It can now be resold. 
• It becomes a vehicle of liquidity. 
• It becomes a creature of not only the market but of the exchange. 

The run-up in the prices of mortgage-backed securities before The Great Meltdown was a way of putting the real estate of the country into an IPO. Real estate became a growth industry.