how does an economic bubble\speculative bubble work?
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When Dune came out, there was a ton of hype about Zendaya. All the commercials featured her and her appearance helped sell a lot of tickets. When you watch the movie, it turns out she’s only in the last 10 minutes. All the hype was way over the top of what actually was there.
In a bubble, different kinds of assets get over-hyped what they actually could produce. The value of them skyrockets clear up until people realize what actually is going on. Whereas Zendaya fans only suffered mild disappointment after the movie was over, investors suffer significant losses when they realize they bought hype rather than an asset providing reasonable returns
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