How do bubbles impact the economy?
replied to: trmichaels
Replied to: How do bubbles impact the economy?
Bubbles can affect spending habits; they lead consumers to spend more money because they feel richer.
replied to: inzmtns
Replied to: Bubbles can affect spending habits; they lead consumers to spend more...
Overvalued assets can lead to a significant decrease in discretionary spending when the bubble bursts.