"Bubble" is commonly understood to describe a divergence between overvalued market prices and underlying asset values. And while price anomalies are a typical consequence, they are generally not among the critical aspects of bubbles. I'll start with my basic definition: A bubble is a self-reinforcing but inevitably unsustainable inflation.
Bubbles, at their core, are fueled by credit - or "credit inflation." Asset inflation and speculative asset price bubbles are a common upshot. At their core, bubbles are mechanisms of wealth redistribution and destruction.
The more protracted the bubble period, the greater the maladjustment to underlying