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? Address Thank you! Oops! Related Contents What Smart Investors Know Smart investors take the time to separate emotion from fact. How the Federal Reserve Works Each day, the Fed is behind the scenes supporting the economy and providing services to the U.S. financial system. 5 Smart Investing Principles Principles that can help create a portfolio designed to pursue investment goals.