Bridging the Confidence Gap In the world of finance, the effects of the "confidence gap" can be especially apparent. Share | Related Content Bursting the Bubble Tulips were the first, but they won’t be the last. What forms a “bubble” and what causes them to burst? 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.