Recently, we’ve seen stock prices shoot up, with home prices following right along. As they’ve risen higher and higher, some market watchers have tossed around a word that connotes something very light, but in this context, carries heavy meaning: bubble.
“A bubble is one of these things like pornography, you know it when you see it,” says Allan Sloan, Fortune’s senior editor-at-large. “To me, a bubble is an Internet stock that comes out at $40, goes to $100, and two years later trades at $7. But these days, a bubble seems to be defined as something that will go down.”
To hear more about whether we are in a housing, stock, or even a bond market bubble, click on the audio player above.
We’re here to help you navigate this changed world and economy.
Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.
In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.
Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.
Donate now to get almost any thank-you gift.