Economic bubbles refer to some non-real economic factors that appear in the process of economic growth, such as financial securities, bonds, land prices and financial speculative transactions. As long as they are controlled within a moderate range, they are beneficial to an active market economy.

Only when there are too many economic bubbles, are over-inflated, and are seriously out of touch with the needs of real capital and industrial development, will it evolve into a bubble economy of false prosperity.

Example: In 2007, China, the sleeping lion, finally woke up.

The real estate market in Shenzhen has begun to surpass that of Hong Kong and the New Territories, and the office buildings in Shanghai and Beijing have also begun to catch up with New York. The number of people opening accounts to trade stocks has reached 100 million.

As a result, the world's largest bank, largest oil company, largest real estate company, and largest insurance company were suddenly created... This year, the ranking of the world's top 500 companies was in chaos, because the old top 500 companies were suddenly replaced.

Chinese companies that got bigger squeezed out.

Chinese businessmen are starting to feel proud in the world. With a lot of investors' money in their pockets, they can buy whoever they want.

As a result, buyers from China frequently inquire about oil fields in Central Asia and Africa, copper and aluminum mines in Latin America, and iron ore and coal mines in Australia.

In 2007, the focus of the world economy was on China. Economic geniuses around the world were discussing the Chinese stock market and property market. One group said that the bubble was too big, while the other group said that China was rewriting the world economy and its potential was far from being realized.

Unfortunately, the rewriting of the world economy has not yet been completed, and the subprime mortgage bubble in the United States has burst again.

China's stock market entered 2008 with a decrease of nearly one-third.

I remember that in September 2007, I went back to Changchun for vacation and met an old colleague of my mother.

A 75-year-old man who has been an accountant all his life has become China's first generation "gay fan".

He cut out all the fund-related reports in the newspaper with scissors and stapled them into three and a half large books. He also learned to draw charts on graph paper.

He spent all his spare money at home to buy a fund.

I asked him if it was too risky to buy stocks now?

The old man said that what he bought was not a stock, but a fund. Funds are comprehensive investment tools that are managed by financial professionals and have the strongest risk resistance.

The QDII he just bought was bought through the back door of the bank, and now he has earned 5% in less than a month.

After the Spring Festival, my mother called me and told me: The old man invested 200,000 yuan in the fund, but only 100,000 yuan was left, and now he is mentally disturbed.

My wife needed money for medical treatment, but he kept it and refused to sell it. He went to the bank all day long to ask for money from others.

Whoever you meet tells me: Fund managers are all liars.