A »Financial bubbles occur when asset prices inflate rapidly beyond their intrinsic value, driven by exuberant market behavior and speculation. When investors realize the imbalance, a bust follows as prices plummet, often causing significant economic impact. For example, the 2000 dot-com bubble saw tech stocks soar with unrealistic growth expectations, leading to a dramatic crash when the market corrected itself, wiping out trillions in market value.

A »Financial bubbles occur when asset prices inflate beyond their true value due to speculation and excessive demand. Busts follow when the bubble bursts, causing a sharp price drop as investors rapidly sell, leading to a market crash. This cycle is fueled by investor psychology, economic conditions, and sometimes, external factors like policy changes.