From books

Crowds can fall into collective madness, like gold rushes or tulip mania, due to enthusiasm and imitation.

Enthusiasm and imitation drive crowds into speculative bubbles and irrational behavior

Imagine all your friends buy a rare toy because it's trendy, even if it's expensive. You feel you must have it too. Mackay tells about people who sold everything for tulips in Holland, thinking they'd become rich. It's like when everyone in class wears the same sneakers, and you want them too.

Why it mattersThis book explains why financial bubbles and irrational trends appear in the modern economy.

EnthusiasmImitationSpeculativebubbles
How bubbles form via enthusiasm and imitation

Back to the feed