It seems to me that after each bubble (like the American stock market speculations of the 1920’s or the 1990’s dotcom bubble) , an economic depression ensues.
Possible explanation?
When a bubble happens, several people lose their sound judgment and spend their capital and precious time on nonprofitable business dealings. They waste their time on activities, which do not create food and other life’s needs. Without feeling so, they get into debt, one way or other. Eventually, the bubble bursts and they realize that they didn’t make a profit from the work and capital spent.
Since their capital is gone and time was spent on other than profitable work, they find themselves without money to buy the necessities and luxuries of life. Hence, depression.
Depression ends after people work few years and pay off their debts (both real and virtual) and again have money to spend.
