Bursting the Bubble Tulips were the first, but they won’t be the last. What forms a “bubble” and what causes them to burst? Share | Have A Question About This Topic? Name Email Address Question Thank you! Oops! Related Contents The Fed and How It Got That Way Here is a quick history of the Federal Reserve and an overview of what it does. How the Federal Reserve Works Each day, the Fed is behind the scenes supporting the economy and providing services to the U.S. financial system. Impact of Taxes and Inflation Estimate the potential impact taxes and inflation can have on the purchasing power of an investment.