The allure of quick profits leads to excessive risktaking from "summary" of A Short History of Financial Euphoria by John Kenneth Galbraith
The seductive appeal of rapid financial gains is a potent force that can drive individuals to take on excessive risks in the pursuit of wealth. This phenomenon has been observed time and time again throughout history, as investors have been lured by the promise of quick profits only to find themselves caught up in speculative bubbles that ultimately burst with disastrous consequences. The allure of easy money can cloud judgment and lead individuals to ignore warning signs that would otherwise give pause to more prudent investors. In the heyday of a financial bubble, rational decision-making can quickly be overtaken by the desire for ever greater profits. Investors become blinded by the potential for quick riches and begin to engage in increasingly risky behavior in the hopes of maximizing their returns. This irrational exuberance can create a feedback loop in which rising asset prices fuel even more speculation, leading to a self-reinforcing cycle of excessive risk-taking. The history of financial markets is replete with examples of this phenomenon, from the tulip mania of the 17th century to the dot-com bubble of the lat...
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