The bubble economy is because the early commodity prices exceeded the current commodity value. If the original value of a commodity is low, it will be worthless if you fry it high. Once the funds are withdrawn, they will collapse. For example, the stock market, the stock value 10 yuan, you insist on arguing to 100 yuan, and the extra part is the bubble. Once the company has problems or the capital chain breaks, it will have a chain reaction and collapse instantly. Common under inflation.

Common economic bubbles are:

1. The financial derivatives bubble, such as the subprime mortgage crisis in the United States, caused the situation today because of the chain reaction of various funds and secured derivatives, and the lender was unable to pay the mortgage.

2. The stock bubble, the stock was blindly inflated, resulting in a bubble.

3. The credit bubble caused by bank bad debts, blind lending, leading to insolvency.

4. There is a speculative crisis in gold and oil futures markets. For example, gold and oil were speculated during the war, and the emergence of post-war substitutes caused selling and bubbles.

The reason is:

1. Poor supervision. Imperfect supervision system.

2. The market is not perfect. Imperfect market system.

3. Speculation, blind trading.

4. Issuing currency and exchange rate policies cause excessive currency liquidity.

Solution:

1. Supervision. 2. Closed redemption. 3. Issue new currency. 4. privatization. 5. invest. 6. Digest the bubble as much as possible and establish a rich country bubble economy fund. 7. Increase supply, establish an economy in which industry and finance join hands, so that the bubble can be digested by industry as soon as possible and promote economic development.