The quest for easy money perpetuates the cycle of financial euphoria and collapse from "summary" of A Short History of Financial Euphoria by John Kenneth Galbraith
The quest for easy money is a common thread that runs through the history of financial euphoria. People have always been drawn to the promise of quick and substantial wealth, often at the expense of prudence and caution. This desire for easy money fuels the speculative fervor that underlies many financial bubbles. When individuals believe that they can make a quick profit with little effort, they are more likely to engage in risky behavior. This mentality can lead to a disregard for fundamental economic principles and a willingness to overlook warning signs of impending collapse. In the pursuit of easy money, rational decision-making often takes a backseat to greed and speculation. The cycle of financial euphoria and collapse is perpetuated by the belief that easy money is always within reach. As prices rise and profits accumulate, individuals become increasingly convinced that they are invincible and can continue to profit indefinitely. This overconfidence leads to excessive risk-taking and a lack of preparation for the inevitable downturn. When the bubble finally bursts and the easy money disappears, the consequences can be severe. Investors who were once riding high on the wave of financial euphoria are left reeling from the sudden collapse. The quest for easy money has not only led to the creation of the bubble but also to its eventual demise. In the aftermath of a financial collapse, the cycle often repeats itself as individuals once again seek out opportunities for easy money. The lessons of the past are quickly forgotten as the allure of quick wealth takes hold. This cycle of financial euphoria and collapse is a recurring theme in history, driven by the timeless quest for easy money.
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