Economic bubble

(redirected from Bubble mentality)

Economic bubble

A market phenomenon characterized by surges in asset prices to levels significantly above the fundamental value of that asset. 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.
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".
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.
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.
A rush to real estate combined with Baby Boomer liquidity, distrust of the stock market and a bubble mentality to drove that mania.
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.
Make no mistake - this stock market has a bubble mentality and like all bubbles, this one is going to burst.