I have been reading about the worsening housing/rental market, COL and worrying inflation figures as a whole. Seeing lots of talk about this mythical “bubble”- people saying things like “the bubble is about to pop”, and “welcome to the bubble” blahblahblah **BUBBLE**. Seems like this is a common term/knowledge in economics but I don’t fully understand… please eli5 🙂
In: 4
Think of a bubble as the inflation of price in a market. The price rapidly increasing is the bubble growing, and eventually the bubble will pop, which is the collapse of the market. Then you slowly start blowing up a new bubble and it’s something much smaller, and will eventually begin to be much larger again.
Latest Answers