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 ?
BITCOIN pushed past the 10,000 US dollars mark for the first time yesterday, further stoking fears of a price bubble around the cryptocurrency.
The soaring value of bitcoin and other cryptocurrencies comes despite growing warnings over a price bubble.
Belinskaja (2007) claims that the very definition of a price bubble is not that important as "bursting" of the bubble and the ensuing consequences.
Additionally, almost two thirds (64%) of delegates felt that Quantitative Easing is highly likely to create an asset price bubble -- where prices become disconnected from reality.
Last summer Bank of England Governor Mark Carney said the threat of a price bubble was the "biggest risk" to recovery.
This came despite recent curbs on lending aimed at cooling the country's real estate sector amid fears of a formation of an asset price bubble that, if burst, could weigh the rest of the economy down.
However, by 1637 the tulip price bubble crashed and many market participants went bankrupt.
He added: "Since last year, rising house prices have promoted concern about another price bubble emerging.
Meanwhile, IHS Global Insight economist Howard Archer warned that the risk of a house price bubble developing across the UK was "very real".
It follows a warning yesterday from Bank of England Governor Mark Carney who signalled he is ready to take action to cool Britain's surging housing market amid fears a new property price bubble could derail recovery.
THE Bank of England should consider capping the loan-to-salary ratio for mortgages to prevent a house price bubble, Lord Heseltine has suggested.
He believes that talk of a price bubble is unhelpful, to put it politely, and that the market needs to be left to its own devices without scaremongering commentary based on figures skewed by London's exaggerated rises.