Bubble (economics)
Etymology
From the ordinary word for a fragile sphere of air, likely imitative in origin. The financial sense crystallized with the South Sea Bubble of 1720, a speculative frenzy in British shares whose collapse made "bubble" the standing metaphor for a swelling that inevitably bursts.
noun · /BUB-ul/
A period when the price of an asset rises far above its real worth, driven by excitement and expectation rather than fundamentals — until it suddenly collapses.
What it names
It names the pattern behind manias: prices climb because people expect them to keep climbing, a belief that works until it abruptly does not.
Example
Late in the housing bubble, buyers paid any price, sure that values could only rise.
Related idea
A bubble is inflated by speculation — buying not to use or hold but purely in the hope of selling higher.
noun · /BUB-ul/
A thin sphere of liquid enclosing air or gas, or a pocket of gas rising through a liquid.
What it names
soap bubbles, the bubbles in soda
Example
Bubbles streamed up through the champagne.
Related idea
The economic sense borrows the image — something inflated, fragile, and apt to burst.
noun · /BUB-ul/
A protective or isolating environment that seals you off from outside reality.
What it names
living “in a bubble”; a filter bubble; a quarantine bubble
Example
Online, we each drift into a bubble of agreeable opinion.
Related idea
Connects to motivated-reasoning — inside the bubble, only the comfortable views get in.