The cycle of financial euphoria is a cautionary tale for future generations of investors from "summary" of A Short History of Financial Euphoria by John Kenneth Galbraith
The cycle of financial euphoria, as detailed by John Kenneth Galbraith in his book 'A Short History of Financial Euphoria', serves as a stark warning for future generations of investors. The recurring pattern of boom and bust in financial markets, driven by irrational exuberance and speculative mania, has been a constant throughout history. Galbraith highlights how investors often get caught up in the euphoria of a rising market, believing that the good times will never end. This leads to excessive risk-taking, over-leverage, and a disregard for fundamental economic principles. As prices soar to unsustainable levels, the inevitable crash comes as a shock to many who were blinded by greed and ignorance. The aftermath of a financial euphoria is often charac...
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