Bubbles and Panics

Bubbles and Panics
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Introduction
An economic bubble refers to an overflow in the market that is as a result of a speculation in the market offering a particular asset that causes a burst, or an expected expansion of activities in that field make resulting in very high levels of inflation on the prices of commodities. In the due process, the costs become unmanageable, and the bubble followed by a crash in the associated market field. In the period of the late 1990s, investors were filled with high expectations of becoming very rich by using the internet as a platform for investment, they plunged their money on the believed golden opportunity and later on hoped to become world tycoons because of the of the enormous profits after (Allen & Gale, 1999). This led to many companies running to do their business on the speculated dot-com platform. Dot-com companies, as a result of the many companies rushing up to pump their money on the internet boom many of the investors forgetting on the traditional investment metrics like the number of firms on the real share price related to its per-share earnings. Surprisingly they ventured to a style of business the way for building a brand awareness and economic share fast even if it needed giving out their valuable services at a lower price or even for free. However due to the extensive growing of and advancement in technology and an increase in some people able to access the internet an…