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. Bubbles are often hard to detect in real time because there is disagreement over the fundamental value of the asset.
References in periodicals archive ?
Make no mistake - this stock market has a bubble mentality and like all bubbles, this one is going to burst.
Will it be wimps or bravehearts?; Take stock of your shares
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
"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
"For the past 15 years, home price changes and sales volumes have either been boosted by a bubble mentality or crushed by crash psychology."
US Housing Market: Following 15 Years Of Boom-And-Bust, Is It Getting Back To Normal?
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
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
With arithmetic like this, it is easy to see why investors could develop irrational exuberance, feeding a "bubble mentality." However, sustained years of wealth growth from home ownership have occurred.
For real estate markets in 2005 sale: this article is the first in a series of reports on the real estate industry in Memphis and Shelby County produced by the Center for Real Estate Research and sponsored by the Memphis Area Association of Realtors
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