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 Question Thank you! Oops! Related Contents The Fed and How It Got That Way Here is a quick history of the Federal Reserve and an overview of what it does. A Look at Diversification Diversification is an investment principle designed to manage risk, but it can't prevent against a loss. 5 Smart Investing Strategies Getting what you want out of your money may require the right game plan.