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Echo Bubble

What is 'Echo Bubble'

A post-bubble rally that becomes another, smaller bubble. The echo bubble usually occurs in the sector in which the preceding bubble was most prominent, but the echo is less dramatic.

Explaining 'Echo Bubble'

People point to the rally that occurred after the market crash of 1929 as an example of an echo bubble. Just like its more prominent predecessor, the smaller echo bubble eventually burst. Also, after the technology bubble that occurred at the turn of the 21st century - one of the biggest bubbles of all time - people believed that another echo bubble was on the way.


Further Reading


Bubbles: Some perspectives (and loose talk) from history
academic.oup.com [PDF]
… R - Urban, Rural, Regional, Real Estate, and Transportation Economics; Z - Other Special Topics; Browse All … Volume 21. Issue 1. January 2008. Article Contents. Abstract. What is a Bubble? Theories of Bubbles. Loose Talk Revisited. References. < Previous; Next >. Article Navigation …

Echoes of Veblen's Echoes of Veblen's
www.tandfonline.com [PDF]
… R - Urban, Rural, Regional, Real Estate, and Transportation Economics; Z - Other Special Topics; Browse All … Volume 21. Issue 1. January 2008. Article Contents. Abstract. What is a Bubble? Theories of Bubbles. Loose Talk Revisited. References. < Previous; Next >. Article Navigation …

Financial bubbles: mechanisms and diagnosticsFinancial bubbles: mechanisms and diagnostics
papers.ssrn.com [PDF]
… R - Urban, Rural, Regional, Real Estate, and Transportation Economics; Z - Other Special Topics; Browse All … Volume 21. Issue 1. January 2008. Article Contents. Abstract. What is a Bubble? Theories of Bubbles. Loose Talk Revisited. References. < Previous; Next >. Article Navigation …

Laws against bubbles: An experimental-asset-market approach to analyzing financial regulationLaws against bubbles: An experimental-asset-market approach to analyzing financial regulation
heinonline.org [PDF]
… R - Urban, Rural, Regional, Real Estate, and Transportation Economics; Z - Other Special Topics; Browse All … Volume 21. Issue 1. January 2008. Article Contents. Abstract. What is a Bubble? Theories of Bubbles. Loose Talk Revisited. References. < Previous; Next >. Article Navigation …

Echo epidemics: Control frauds generate white-collar street crime wavesEcho epidemics: Control frauds generate white-collar street crime waves
heinonline.org [PDF]
… R - Urban, Rural, Regional, Real Estate, and Transportation Economics; Z - Other Special Topics; Browse All … Volume 21. Issue 1. January 2008. Article Contents. Abstract. What is a Bubble? Theories of Bubbles. Loose Talk Revisited. References. < Previous; Next >. Article Navigation …



Q&A About Echo Bubble


What is an echo bubble?

An echo bubble is a post-bubble rally that becomes another, smaller bubble.

Why did these people believe there would be another technology bubble at the turn of the 21st century?

These individuals believed there would be another tech boom because they thought it was inevitable for bubbles to occur again and again in different sectors over time.

Who are some of the people who believed there would be another technology bubble at the turn of the 21st century?

Some of those who believed there would be another technology bubble were investors and economists.

What does the term "echo" refer to in this context?

The term "echo" refers to the fact that the rally after a crash or other event tends to be smaller than its predecessor.

When do people believe an echo bubble occurs?

People believe an echo bubble occurs after a major market crash.