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 | Related Content The Real Cost of a Vacation Home What if instead of buying that vacation home, you invested the money? 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. Impact of Taxes and Inflation Estimate the potential impact taxes and inflation can have on the purchasing power of an investment.