Economic bubble

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Economic bubble

A market phenomenon characterized by surges in asset prices to levels significantly above the fundamental value of that asset.Â Bubbles are often hard to detect in real time because there is disagreement over the fundamental value of the asset.

References in periodicals archive ?

The bubble mentality, where every good idea gets funding, is over," Elias Zerhouni, research and development chief at French drug giant Sanofi SA, told The Wall Street Journal last spring.

Genome mapping, stem cell therapy and foundering funding: biotech comes of age

Leader of the Welsh Conservatives, Andrew RT Davies, has vowed to create the new top job saying the "Cardiff Bay bubble mentality needs to burst".

Now's time to burst 'Cardiff Bay bubble' Tory plan for minister to look after North Wales

For the past 15 years, home price changes and sales volumes have either been boosted by a bubble mentality or crushed by crash psychology," said David Stiff, chief economist, Fiserv.

Fiserv Case-Shiller Home Price Insights: Housing Market Returning to Normal, Poised To Extend Gains

The bubble mentality justified highly leveraged financing, with the presumption that a galloping economy would keep cash flows robust and a surging market would ensure easy refinancing.

Securitized mortgages in commercial real estate signal trouble ahead

A rush to real estate combined with Baby Boomer liquidity, distrust of the stock market and a bubble mentality to drove that mania.

Housing market: It's good time to lock in a bargain

In the grip of a bubble mentality, we -- as investors, consumers and businesses -- blithely assumed risk and convinced ourselves it was perfectly safe to do so," he writes.

NEWSWEEK Cover: I Want You to Start Spending!

Make no mistake - this stock market has a bubble mentality and like all bubbles, this one is going to burst.