![]() ![]() ![]() ![]() And you realise you’re paying insane amounts of money for a flower. So they work well for all the people who are selling tulips for 20 florins or 30 florins, but all of sudden, for whatever reason, when they reach 101, the market disappears. They work great, until they no longer work, and then they just collapse, like a house of cards. Yes, and what he highlights is that these are historical moments when financial markets basically look like Ponzi schemes. It shows that as long as we’ve had financial markets, there have been these insanely irrational bubbles: the history of finance is really the history of financial bubbles.īut is it that irrational? Say with Tulipmania, even if you know that one tulip bulb isn’t worth 10 florins, as long as you can sell it for 20 florins, it’s worth it – even if you know it’s ridiculous. It’s everything from Tulipmania in the Netherlands in the early 17th century to the Mississippi Company and he would have loved the sub-prime mortgage bubble. If you ever thought that irrational exuberance was a modern invention, a by-product of CNBC and day traders, this book will put you in your place. This is a wonderful eclectic history of mass human irrationality, and a great history of financial bubbles. Your first book is Extraordinary Popular Delusions and the Madness of Crowds by Scottish journalist and songwriter Charles Mackay, first published in 1841. ![]() Foreign Policy & International RelationsĮxtraordinary Popular Delusions and the Madness of Crowds. ![]()
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