Watch This: What Causes Economic Bubbles?

Economic bubble
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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.

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