The Austrian theory of the business cycle explains why these bubbles occur. It states that when there is inflation via credit expansion that the sectors that at

The Austrian theory of the business cycle explains why these bubbles occur. It states that when there is inflation via credit expansion that the sectors that attract that increased credit are in the higher orders or production that are more capital intensive. The inflated prices end up in areas like housing or the stock market. If you stop the inflation then you won't get any more bubbles assuming of course the theory is correct.