BURSTING BUBBLE Meaning and
Definition
-
Bursting bubble refers to a phenomenon where an economic, financial, or speculative bubble suddenly collapses, leading to a sharp decline and loss of value in the affected asset or market. It can also be metaphorically used to describe any situation where an inflated expectation or belief dramatically deflates or fails to materialize.
In the context of economics or finance, a bubble typically occurs when the price of an asset, such as stocks, real estate, or cryptocurrencies, becomes significantly detached from its intrinsic value, primarily driven by speculative buying and irrational exuberance. As the bubble continues to inflate, fueled by optimism and positive sentiment, it eventually reaches a point where market participants start questioning the sustainability of the high prices.
The bursting of a bubble often transpires when market sentiment quickly shifts, causing panic selling and a rush to exit the market or divest from the overvalued assets. This sudden reversal of fortune leads to a sharp drop in prices and significant financial losses for those who bought in at inflated levels. The bursting bubble exposes the underlying vulnerabilities and unsustainability of the asset or market, effectively correcting the overvaluation.
Outside of economics, the phrase "bursting bubble" can also be applied metaphorically to various situations. For instance, it can describe the sudden deflation of an individual's or an organization's high hopes, plans, or expectations. It implies the disappointment that arises when something that was believed to be successful, profitable, or significant turns out to be unsustainable or illusory.
Common Misspellings for BURSTING BUBBLE
- vursting bubble
- nursting bubble
- hursting bubble
- gursting bubble
- byrsting bubble
- bhrsting bubble
- bjrsting bubble
- birsting bubble
- b8rsting bubble
- b7rsting bubble
- buesting bubble
- budsting bubble
- bufsting bubble
- butsting bubble
- bu5sting bubble
- bu4sting bubble
- burating bubble
- burzting bubble
- burxting bubble
- burdting bubble
Etymology of BURSTING BUBBLE
The phrase "bursting bubble" combines two words: "bursting" and "bubble".
The word "bursting" is the present participle form of the verb "burst". It dates back to the late Middle English period, derived from the Old Norse word "bresta" meaning "to burst".
The term "bubble" originated in the late 14th century and is derived from the Middle English word "bobel" or "bobul", which was used to refer to a bubbling drink or the act of bubbling. It is thought to be onomatopoeic, imitating the sound of bubbling water.
The combination "bursting bubble" became popular through its metaphorical use in the context of economic bubbles. An economic bubble refers to a period of rapid expansion followed by a sudden and significant decline in the value of an asset or market, similar to a soap bubble that eventually bursts.
