When we think about financial bubbles, we typically recall the recent run-up in house prices or the dot-com craze of the late 1990s (and some think of the 17th century tulip bubble). We might define “bubbles” as sharp price increases for an asset without supporting increases in the intrinsic value or other fundamental financial characteristics. Another defining feature: You can’t see a bubble until it pops. College education seems to be heading in that direction.
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Bubbles 101
Posted by: Andrea Belz December 20, 2010 05:00 AMWhen we think about financial bubbles, we typically recall the recent run-up in house prices or the dot-com craze of the late 1990s (and some think of the 17th century tulip bubble). We might define “bubbles” as sharp price increases for an asset without supporting increases in the intrinsic value or other fundamental financial characteristics. Another defining feature: You can’t see a bubble until it pops. College education seems to be heading in that direction.