which results in new profit opportunities. The boom is fuelled by an expansion of bank credit as new banks are formed,
http://blingee.com/profile/coat57turnip, new financial instruments are introduced and personal credit outside the banks increases. During that period there is extensive "overtrading", a not very clear concept which generally refers to speculation for a price rise, or an overestimation of prospective returns due to euphoria. This stage is also often referred to as a "mania" emphasising its irrationality and "bubble" predicting the collapse. Eventually,
http://picyou.com/user/cone16worm, some insiders decide to take their profits and sell out and the increase in prices begins to moderate. A period of "distress" may then occur until speculators realise that the market can only go downwards. The crisis may be precipitated by some specific signal such as a bank or firm failure or a revelation of a swindle; the later are quite frequent in such circumstances as people try to escape the imminent collapse. The rush out of the real or long
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