In Austrian business cycle theory, this phenomenon is known as malinvestment, see https://wiki.mises.org/wiki/Malinvestment https://wiki.mises.org/wiki/Malinves

In Austrian business cycle theory, this phenomenon is known as malinvestment, see https://wiki.mises.org/wiki/Malinvestment https://wiki.mises.org/wiki/Malinvestment, there are some historical bubble examples there. The general idea, as I understand it, is that if someone invests and makes a ton of money, then other investors come in trying to do something similar to make a lot of money too, only what they are investing in is no good. But all the money creates a temporary illusion of an economic boom, which is what has been happening in the S.F. Bay area for some time now. I'm old enough to remember the .com bust quite well. At the time the "irrational exuberance" (as Greenspan/Shiller dubbed it) made perfect sense, and the ideas were fundamentally sound, the problem was that investors did not understand that it would take another 10-15 years to get to ubiquitous Internet, and the impatient ones got burned when the bubble burst.