PRECAUTIONS

Abstract: “Bubble ” is the excessive growth of the fictitious capital in brief. “The real estate bubble ” is one kind of the bubble, and the bubble economy taking real estate as carrier. This paper begin with concept of the bubble of the real estate, analyses the reason which can arouse the real estate bubble, from psychology of investor and speculation, etc. The paper summarize kinds of danger that it will be brought to economy once real estate foam evaporate, and has put forward some effective precautionary measures at the end of the article