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 The Cycle of Investing Understanding the cycle of investing may help you avoid easy pitfalls. 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 Strategies Getting what you want out of your money may require the right game plan.