市场上的泡沫是由于股票价格的下跌。应检查正反馈;否则，就会导致市场参与者和企业羊群中模仿的公允价值偏离公允价值。听证会的错误定价会导致股市泡沫和市场崩溃。利率的上升和新组织的出现会导致股票价格下跌。新公司在市场上发行更多的股票，从而降低了现有组织的利润空间。投资者在市场泡沫期间借钱购买股票。在利率上升的情况下，投资者出售股份以支付应计利息。由于这个原因，股票的抛售导致了市场的崩溃。股票价格的下跌影响了投资者和银行。银行在向投资者放贷和购买股票时受到影响。房产的价格下跌，因为房产是用从银行借来的钱购买的，这可以从日本的银行危机和全球金融危机的例子中得到解释。这些公司从银行贷款购买资产，以期以一个有价值的价格转售其未来。
当股票价格下跌时，资产的价格会降低，从而影响未来资产的预期收益。在这种情况下，老公司遭受损失，银行的财富受到影响，价格的进一步下跌会影响银行的资本，导致银行危机。高负债行业不允许借入更多资金，银行要求偿还贷款金额。投机者和开发商出售资产以偿还贷款。价格下跌，资产出售，资产的整体价值下降，导致破产。日本的银行危机是由于山中证券的失败造成的。
The bubbles in the market are due to the decrease in the stock prices. The positive feedbacks should be checked; otherwise, it leads to the high deviation from the fair value causing imitation among market participants and corporate herding. The mispricing effect of hearing leads to a stock market bubble and the market crashes. The rise in interest rate and the emergence of new organizations can cause fall in the stock prices(North and Caes, 2012). The new companies issue more shares in the market that decrease the profit margin of the existing organizations. The investors borrow money to purchase shares during the market bubble. In the situation of rising interest rate, the investors sell the shares to pay the accrued interest. Due to this, the selling of shares leads to a market crash. The decrease in the stock prices affects both the investors and banks. The banks are affected as they lend money to investors and purchase shares.
The price of the properties falls as the properties are purchased with the money borrowed from the bank which can be explained from the example of bank crisis in Japan and the global financial crisis. The companies take a loan from the bank to purchase assets with the view of reselling its future at a valued price. When price of the stock decreases, then the price of assets decreases which affects the expected returns on assets in future (Siegel, 2008). In this circumstance, the older companies suffer losses, and the wealth of the banks is affected, and a further decline in the prices affects the capital of the banks leading to bank crisis. The industries with high debts are not allowed to borrow more funds, and banks ask to pay the loan amount. The speculators and developers sell their assets to repay the loan. The prices fall, assets are sold and the overall value of the assets falls which lead to the bankruptcy. The bank crisis in Japan is caused due to the failure of the Yamaichi Securities.