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The psychology of boom and bust cycles repeats throughout history from "summary" of A Short History of Financial Euphoria by John Kenneth Galbraith

The history of financial markets is marked by an unmistakable pattern of boom and bust cycles. These cycles, driven by the collective psychology of investors, have repeated themselves time and time again throughout history. The euphoria that accompanies a boom is fueled by the belief that the good times will never end, that prices will continue to rise indefinitely. This irrational exuberance leads to speculation, as investors pour money into increasingly risky assets in search of ever-higher returns. As prices skyrocket, more and more people are drawn into the market, lured by the promise of easy money. The frenzy reaches a fever pitch as everyone from ordinary citizens to institutional investors clamor to get a piece of the action. But beneath the surface, the seeds of the next bust are already being sown. The same psychology that drove prices up during the boom now turns against investors as fear takes hold. As prices begin t...
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    A Short History of Financial Euphoria

    John Kenneth Galbraith

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