Summary of A Short History of Financial Euphoria

A Short History of Financial Euphoria by John Kenneth Galbraith is an insightful examination of the recurrent phenomena of boom and bust cycles in the financial markets over the centuries. Based on his decades-long study of financial manias, Galbraith examines episodes of extraordinary excess, from England's South Sea Bubble in the 1711 to the Wall Street Crash of 1929 and Japan's asset-bubble in the late 1980s. He looks into the psychology of the perpetrators and victims of financial manias, the blindness to risk and the audacity of gains pursued. Along the way, he issues warnings about the effects of financial recklessness on the economy as a whole. A Short History of Financial Euphoria provides a timely reminder of the painful lessons that come with unchecked optimism and overconfidence in the markets.