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Encyclopedia > Economic bubble

bubbles are things that you make out of soap. you can make them different shapes i think. --71.184.113.203 10:33, 21 September 2007 (UTC)joe bob the third


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Economic bubble - Wikipedia, the free encyclopedia (645 words)
An economic bubble (sometimes referred to as a "market bubble", a "financial bubble", or a "speculative mania") refers to a market condition in which the prices of commodities or asset classes increase to absurd or unsustainable levels (that no longer reflect utility of usage and purchasing power).
Economic bubbles are generally considered to have a negative impact on the economy because they cause misallocation of resources into non-optimal uses.
In addition, the crash which usually follows an economic bubble can destroy a large amount of wealth and cause continuing economic malaise as was the case of the Great Depression in the 1930s for much of the world and the 1990s for Japan.
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