Business Finance
Global Financial Markets Video Discussion

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I don’t understand this Management question and need help to study.

Short videos and a small paper shouldn't take long, also I will be posting a lot of questions like this.

Please discuss the videos below, you need to make this a substantial discussion posting/paper. use current events and news to apply the materials on the videos. (1000 words)

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Economic Bubble

According to Prateek Singh, the economic bubble refers to a commercial-stage that
experiences increase in expansion, followed by a decrease in the factor (Singh, 2015). Similarly,
the economic bubble is fostered by increased pricing of financial assets. The rapid growth in the
asset prices is as a result of increased expenditure. Increase in the economic growth also results
in better organizational performances (Dassios, & Li, 2018). As such, the case results in
improved remuneration rates for the employees. Equally, there is improved purchasing power
among the individuals that ultimately results in the hiking of asset prices. Additionally, the
economic expansion also results in a financial bubble. Increase in the expansion rates enhances
liquidity. As a result, the borrowing capacity of individuals increases.
The increased lending rates result in lower interests that ultimately boost investment. The
escalation in investment power consequently causes the economic bubble. Further, Singh
elaborates that the economic bubble that was experienced in the Netherlands resulted in
improved expenditure among the merchants. Likewise, the high investment rates were as a result
of increased trade in the Tulips in Europe. Further, the economic expansion in the region was due
to the Tulip virus that led to new flower variety. As such, the situation resulted in a mania.
Accordingly, the period resulted in the escalated process of the tulips.
Additionally, the investors were willing to pay ...

Kishnewt2017 (32423)
Cornell University

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