The lessons of past financial crises are quickly forgotten in the pursuit of profits from "summary" of A Short History of Financial Euphoria by John Kenneth Galbraith
The history of financial crises is a recurring theme throughout the ages. Time and time again, we witness the same pattern - a period of prosperity followed by a sudden and catastrophic collapse. Despite this, the lessons of past financial crises seem to be quickly forgotten in the pursuit of profits. When the economy is booming, people tend to become complacent. They are blinded by the allure of quick gains and fail to see the warning signs of an impending crisis. Greed takes over, and rational thinking goes out the window. It is during these times that risky investments are made, and financial bubbles are inflated to dangerous levels. As the bubble grows, so does the collective delusion that "this time is different." People convince themselves that the rules of economics no longer apply, and that they have discovered a new paradigm for eternal prosperity. However, history has shown us time and time again that there is no such thing as a free lunch in th...
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