What does economic bubble mean, what does economic bubble mean

Bubble economy: the excessive growth of virtual capital and the continuous expansion of related transactions are increasingly detached from the growth of physical capital and the growth of the industrial sector, the financial and real estate sectors are soaring, and speculative transactions are extremely active. The bubble economy is based on financial speculation, resulting in a false prosperity of the social economy, and eventually the bubble will burst, leading to social and even economic collapse.

The bubble economy can be divided into three stages, namely the bubble formation stage, the bubble expansion stage, and the bubble bursting stage.

An economic bubble is a divergence from value. The ** of a product often fluctuates with the change of supply and demand in the market, but this fluctuation always revolves around the value of the product, and generally does not deviate too much from the cost of producing the product, sometimes higher than its value, sometimes lower than its value, in the long run, ** is consistent with the value. The economic bubble at this time is a reasonable economic bubble.

If the ** (mainly the ** of the asset) is inappropriately higher than its value, rising sharply, causing many people to seek after, so that the ** further rises, there is a "prosperous scene", we must be vigilant against the occurrence of the bubble economy, the bubble economy in the economic bubble inflated beyond a reasonable level, seriously deviated from its economic foundation, no economic development based on the **** will evolve into a bubble economy, increase economic risks, harmful to individuals and harmful to the country.

An economic bubble is a series of property ** inflation, i.e., a large increase in a continuous process, so that its sales market ** far exceeds the value it specifically represents, producing false prosperity and GDP with too many "bubbles". As far as the total assets of a country's people are concerned, they can generally be divided into two parts: financial capital and tangible assets.

In the property market, a lot of property is concentrated in ** and real estate, therefore, the expansion of property ** is especially reflected in ** and real estate industry. The above is the relevant content of what economic bubble means.

The reasons for the emergence of economic bubbles 1, speculation has become a fashion trend, and under its promotion, property has continued to grow; 2. The property has too many and abnormal appraisal profits. This kind of excessively high valuation profitability makes the sales market of the money far away from the value it represents, that is, the real basis of the money. Whether it is in terms of a major property, or in terms of the total amount of property of a country, the vacant part of this sales market** beyond its real economic base, like magic, is illusory and will eventually burst, and this is where the bubble lies.

This article mainly writes about the knowledge points about what economic bubble means

For those who do economic research, there are two different interpretations of the term bubble economy. One of the more common explanations is that the bubble economy is due to excessive speculation in the market, so that the market value far exceeds the actual value, so it also contains great risks, once the impact of the crisis, the market value will be sharply closer to the actual value, with the sharp fall of the bubble, the bubble began to burst. Historically, especially in financial markets, there have been similar ones"The Mississippi Bubble Incident"and many other examples can be referred to.

If society as a whole is overly affected by speculative activity, then an economy with this characteristic is called a bubble economy.

Explanation of the bubble economy.

The phenomenon of false economic prosperity caused by speculative frenzy such as **, real estate, etc. Manifested as: there is widespread speculation in the market, **, real estate transactions are active, **rapid**; However, due to the lack of long-term productive investment, production has stagnated, and the real economic level has not increased much; Once the market is **, the prosperity on the surface of the calendar will be shattered.

The word decomposition of the explanation of foam on the surface or inside of a liquid, due to disturbances such as ocean waves or fermentation or foaming, a light, whitish substance that forms a fine bubble . The metaphor of Wild Rotten Sakura Emptiness and fantasy is explained in detail. It is called a cluster of bubbles in a liquid.

It is also used as a metaphor for the emptiness or illusion of personnel. Southern Dynasty Chen Xu Ling, "Tiantai Xu Ze Master The Explanation of Economy" refers to the rapid changes in the social material production, circulation, exchange and other activities in our agricultural economy. The family economy is well-off, and the economy is financially constrained, and it is explained in detail. Through the world, the people are helped.

Jin Shu Yin Hao Biography": "The foot is deep and long, the thinking is comprehensive, and the knowledge is clear, which is enough to be economical." Tang Yuanjiao, Ganze.

The bubble economy refers to the macroeconomic state in which the value of assets exceeds that of the real economy and it is easy to lose the ability to sustain development.

Bubble economies are often propped up by a lot of speculation and are essentially greedy. Due to the lack of support from the real economy, its assets are as easy to burst as a bubble, so it is called "bubble economy" in economics. The bubble economy grows to a certain extent and often leads to rapid asset values due to the bursting of market expectations that underpin speculation, which is known in economics as a bubble burst.

The word bubble can be traced back to the "South China Sea Bubble Company Incident" that occurred in Britain in 1720, when the South China Sea Company monopolized the right to destroy the teeth of the Spanish Banchun under the authorization of the British, and advocated the rapid growth of its profits, which triggered an unprecedented upsurge in the South China Sea. Other early bubble phenomena include the "Tulip Incident" in the Netherlands and the "John Law Incident" in France. Under the conditions of modern economy, the emergence of various financial instruments and financial derivatives, as well as the liberalization and internationalization of financial markets, have made the occurrence of bubble economy more frequent, the scope of rip-off and rush more extensive, the degree of harm more serious, and the handling measures more complex.

The root cause of the bubble economy lies in the deviation of the virtual economy from the real economy, that is, the virtual capital exceeds the virtual value generated by the real capital.

The bubble economy refers to the macroeconomic state in which the value of assets exceeds that of the real economy and it is easy to lose the ability to sustain development.

Bubble economies are often propped up by a lot of speculation and are essentially greedy. Due to the lack of support for the real economy, its assets are as easy to burst as bubbles, so it is called a "bubble economy" in economics. When the bubble economy grows to a certain extent, it is often due to the bursting of market expectations or myths that support speculative activity, resulting in rapid asset value, which is known in economics as bubble bursting.

Historical origins. The word bubble can be traced back to the "South China Sea Bubble Company Incident" that occurred in Britain in 1720, when the South China Sea Company monopolized the right to Spain under the authorization of the British, and advocated the rapid growth of its profits, which triggered an unprecedented upsurge in the South China Sea. Other early bubble phenomena include the "Tulip Incident" in the Netherlands and the "John Law Incident" in France.

Under the conditions of the modern distribution economy, the emergence of various financial instruments and financial derivatives, as well as the liberalization and internationalization of the financial market, have made the bubble economy more frequent, more extensive, more serious, and more complex. The root cause of the bubble economy lies in the deviation of the virtual economy from the real economy, that is, the virtual value generated by the virtual capital exceeding the real capital.

The simplest way to understand it is the MLM economy.

If you look at the present, all the services you see are in the service industry, and none of them are producing new products. The only apples produced are still OEM.

Now the whole society, including real estate, is a consumer economy, which is the bubble economy.

For example, the big wolf and the Yan group are both selling baked cakes, one day, they began to buy each other's baked cakes, buying and buying to raise the ** from 1 to 50, people in the market saw that the price of the baked cakes kept rising, so they joined in a swarm, resulting in the crazy rise of the baked cakes, a baked cake worth only 1 yuan, sold alive to hundreds of yuan, and some people believe that it will go to **, this is the bubble economy.