I just finished "Extraordinary Popular Delusions and The Madness of Crowds" by Charles Mackay, first published in 1841.
I encourage all HP'ers to read the classic bubble and financial mania books, then apply these tomes to the NASDAQ bubble and the housing bubble. Schoolchildren in 2300 will read about the madness of the 1990's and 2000's just like we read about tulips today.
So read you history, and you'll see how amazing, how perfect, how predictable and how "textbook" the past two manias (and following crashes) have been. And you'll get a glimpse of the post-housing-bubble future. Get ready.
"Sober nations have all at once become desperate gamblers, and risked almost their existence upon the turn of a piece of paper"
"Men, it has been well said, think in herds; it will be seen that they go mad in herds, while they only recover their senses slowly, and one by one"
September 12, 2006
On human folly and bubbles - we've been here before and we'll be here again
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9 comments:
This is a great book. I would also recommend this one.
QUICK!!! RICHARD!!! HURRY!!!!
Tell us everything you know about this subject!! I cant wait to here what you have to say!! I havent heard from you since yesterday and I'm getting worried!!
Please come back!!
Richards mom made him go to school today! lol.
I think the housing market is the last domino to fall in this bubble mania.
He'll be back, He's got nothing better to do.
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Keith has made the amazing discovery that crowd manias play a big part in mass psychology in the markets. Way to go Keith. You are a genius.
The only problem is that savvy market players have understood all this since before Moses. Fortunes have been made by these people for thousands of years. It is no different today.
So the FED & Govt know what exactly is going to happen couple of years back itself. Its Cheating the people for the benefits of corporate America.
Anon said:"I think the housing market is the last domino to fall in this bubble mania".
Agree, housing is the last stage of the business cycle. Bubble or no bubble.
Now its time for companies to start vamping up..in what I dont know, maybe solar power products
I'd be in on that.
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