Economic bubbles have been a recurring phenomenon throughout history, leading to periods of prosperity followed by sudden downturns. But what exactly is an economic bubble? How are they created, and why do they burst? Let's delve into these questions.

The U.S. government, like any entity, earns and spends money. However, its spending often outpaces its income, leading to a budget deficit. To cover these shortfalls, the government borrows money by issuing bonds, bills, and notes bought by investors worldwide.