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speculative bubble refers to a situation where the prices of certain assets, such as stocks or real estate, rise rapidly and significantly above their true or intrinsic value. It occurs when people start buying these assets with the expectation that their prices will continue to rise, rather than investing based on their actual worth. However, this buying frenzy is fueled more by speculation and hype rather than fundamental factors. Eventually, the bubble bursts, leading to a sudden and sharp decline in prices, causing financial losses for those involved.
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