Economic bubbles are created because of inflated (and in the short-term self-fulfilling)expectations of

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Economic bubbles occur when there is a rapid increase in the price of a particular asset or assets, driven by expectations of their future value. This can create a self-perpetuating cycle of buying and selling, as investors try to profit from the rising prices. Eventually, the bubble will burst and prices will plummet, causing significant financial losses for those who invested during the bubble period. Therefore, the most significant factor contributing to the creation of an economic bubble is inflated expectations of future asset prices.

Economic Bubbles Are Created Because of Inflated (And in the Short-Term