The countdown is on- we need to raise $200,000- help us reach our goal by tomorrow. Donate Now

Buzzword: Asset bubble

Marketplace Staff Aug 31, 2007
HTML EMBED:
COPY

Buzzword: Asset bubble

Marketplace Staff Aug 31, 2007
HTML EMBED:
COPY

A little pop brings us this week’s Marketplace Money buzzword: Asset bubble.

An asset bubble refers to the sudden and dangerous rise in the price of an investment or security. Years ago, it was the dot-coms. Now, it’s the subprimes.

This week, economic big-wigs are gathering for an annual Fed meeting, and many of them hope the Fed will change how it deals with bubbles. Like raising interest rates. That slows the flow of cash and deflates the asset frenzy.

Some economists think the Fed ignores early warning signs of a bubble, and by the time it gets noticed, it will already be making another sound: KA-BOOM!

There’s a lot happening in the world.  Through it all, Marketplace is here for you. 

You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible. 

Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.