A bubble, also known as an economic bubble or market bubble, is an economic cycle characterized by the rapid escalation of asset prices followed by a contraction. Occurs when securities are traded at prices unwarranted by the fundamentals driven by exuberant market behavior, these bubbles mark prices to constantly change to a point where supply and demand can no longer set the price. As they are deceptive and unpredictable, bubbles are followed by burst or crash, leading prices tumbling. The life cycle of a bubble displacement, boom, euphoria, profit-taking, and panic. Historic economic bubbles include The Housing Bubble, Dot-Com Bubble, Stock Market Crash of 1929, and Tulip Mania.
Some World's Greatest Bubbles