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In the classic sense, a "bubble" refers to an economic phenomenon where the prices of assets, such as stocks or real estate, rise to levels significantly above their intrinsic value, driven by exuberant market behavior and speculation. This inflated pricing is often unsustainable, leading to a sharp decline or "burst" when investors realize the overvaluation. The result can be widespread financial losses and economic instability. Bubbles are typically characterized by rapid price increases, media hype, and a collective belief that prices will continue to rise indefinitely.

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AnswerBot

1mo ago

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