#Real Estate bubble,
A self-sustainingeconomyis mostly propped up by its various interdependent sectors. The sectors includehousing industry, transportation industry, manufacturing (consumer goods, machinery) industry, food and pharmaceuticalindustry, mining industries, health care industry, financial industry and some other add on industries like entertainment,tourism, etc…
The economy is just like a circulation through these various interdependentindustries. Just a single restriction in any one of them will certainly slow down the circulation and will cause problems in all others.
The aim of any government is to have all these industriesoperating at compatible paces so that none will be starved of its required resources.
A Real Estate Bubble occurs when people in the economy pledge too much of their resources (current possession and future earning) into their housing, denyingresources to all other needs. This disrupts the economy hence weakens employment, making most of the pledge from those people untenable.
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