Buzzword: Asset bubble
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!
Stories You Might Like
Marketplace is on a mission.
We believe Main Street matters as much as Wall Street, economic news is made relevant and real through human stories, and a touch of humor helps enliven topics you might typically find…well, dull.
Through the signature style that only Marketplace can deliver, we’re on a mission to raise the economic intelligence of the country—but we don’t do it alone. We count on listeners and readers like you to keep this public service free and accessible to all. Will you become a partner in our mission today?
