Bursting the Bubble Tulips were the first, but they won’t be the last. What forms a “bubble” and what causes them to burst? Share | Have A Question About This Topic? Name Email Address Message Thank you! Oops! Related Content What Smart Investors Know Savvy investors take the time to separate emotion from fact. Required Reading: The Economic Report of the President The Economic Report of the President can help identify the forces driving — or dragging — the economy. How Compound Interest Works Use this calculator to better see the potential impact of compound interest on an asset.