Editing Economic bubble (section)

== Origin of term ==
[[File:Jan Brueghel the Younger, Satire on Tulip Mania, c. 1640.jpg|thumb|upright|[[Jan Brueghel the Younger]]'s ''A Satire of [[Tulip Mania]]'' ({{Circa|1640}})]]
[[File:South Sea Bubble Cards-Tree.png|thumb|A card from the [[South Sea Bubble]]]]
The term "bubble", in reference to [[financial crisis]], originated in the 1711–1720 British [[South Sea Bubble]], and originally referred to the companies themselves, and their inflated stock, rather than to the crisis itself. This was one of the earliest modern financial crises; other episodes were referred to as "manias", as in the Dutch [[tulip mania]]. The metaphor indicated that the prices of the stock were inflated and fragile – expanded based on nothing but air, and vulnerable to a sudden burst, as in fact occurred.

Some later commentators have extended the metaphor to emphasize the suddenness, suggesting that economic bubbles end "All at once, and nothing first, / Just as bubbles do when they burst,"<ref>Quote from ''{{ws2|The Deacon's Masterpiece}}'' or ''The One-Hoss Shay,'' by [[Oliver Wendell Holmes Sr.]]</ref> though theories of financial crises such as [[debt deflation]] and the [[Financial Instability Hypothesis]] suggest instead that bubbles burst ''progressively,'' with the most vulnerable (most highly-[[Leverage (finance)|leveraged]]) assets failing first, and then the collapse spreading throughout the economy<ref>{{Cite report |last=Dogic |first=Nina |year=2015 |title=Theories of Finance and Financial Crisis – Lessons for the Great Recession |url=https://www.ipe-berlin.org/fileadmin/institut-ipe/Dokumente/Working_Papers/IPE_WP_48_Dodig_Herr.pdf |issue=48 |pages=24 |via=Institute for International Political Economy Berlin}}</ref>.{{citation needed|date=April 2020}}