TULIPMANIA 2015

“In reading The History of Nations, we find that, like individuals, they have their whims and their peculiarities, their seasons of excitement and recklessness, when they care not what they do. We find that whole communities suddenly fix their minds upon one object and go mad in its pursuit; that millions of people become simultaneously impressed with one delusion, and run after it, till their attention is caught by some new folly more captivating than the first.”Charles Mackay, Extraordinary Popular Delusions and the Madness of Crowds

Human nature doesn’t change. It is the same across the world. We are driven by fear and greed. Overconfidence, lack of reason, poor math skills, herd mentality, and delusional thinking lead to bubbles. When the bubble reaches a tipping point, fear takes over and the herd all try to exit at the same time through a narrow pathway. The Crash ensues.

It happened in the 1600’s.

It happened in the 1700’s.

It happened in the 1800’s.

It happened in the 1920’s.

 

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