Personal Finance Apprentice

What Causes Economic Bubbles?

What Causes Economic Bubbles? Have you wondered what causes economic bubbles? You probably should. If you're saving and investing, it's one of those times to turn a threat into an opportunity. Because there's no more profitable time to invest than during a downturn. And given that we've had a couple in a relatively short time (the .com bubble and more recently the housing bubble), it's not a bad idea to find out just what the heck those bubbles are. And here's a short, 4-minute video from TED-ED that explains it very well in simple words.


What Causes Economic Bubbles?

Do you remember a while back, when news was circulating that the Philippine economy might be in a bubble? It made a lot of waves because the US real estate bubble and the resulting financial crisis was relatively still fresh in everyone’s mind.

Nothing that bad has happened so far, so maybe all is well after all. But have you wondered what causes economic bubbles?

You probably should. If you’re saving and investing, it’s one of those times to turn a threat into an opportunity. Because there’s no more profitable time to invest than during a downturn.

And given that we’ve had a couple in a relatively short time (the .com bubble and more recently the housing bubble), it’s not a bad idea to find out just what the heck those bubbles are. And here’s a short, 4-minute video from TED-ED that explains it very well in simple words.

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