Watch This: What Causes Economic Bubbles?

Economic bubble
Photo by Watchara Ritjan / Shutterstock.com

In recent years, we all have learned about the intoxicating highs and destructive lows associated with economic bubbles. The recent housing bubble made homeowners feel rich.

Then, the bubble burst. Nearly a decade later, the nation still has not fully recovered from the ensuing damage.

But what causes economic bubbles in the first place? Watch this TED-Ed video to learn how the mania surrounding bubbles can make just about anything — including tulips — appear vastly more valuable than it really is.

Do you think the stock market is caught in a bubble? Sound off by commenting below or on our Facebook page.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

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