The euphoria phase of financial bubbles is followed by a painful reckoning from "summary" of A Short History of Financial Euphoria by John Kenneth Galbraith
The financial history of mankind is filled with episodes of euphoria. These moments are characterized by an irrational exuberance that drives individuals to believe in the possibility of easy wealth. The euphoria phase of financial bubbles is marked by a collective mania that engulfes investors, convincing them that the good times will last forever. During this phase, asset prices soar to unprecedented levels as investors rush to take advantage of what seems like an endless opportunity for profit. People become blinded by greed and lose sight of the underlying realities that govern the financial markets. They abandon caution and prudence, instead embracing a sense of invincibility that leads them to take increasingly risky bets. However, the euphoria phase i...
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