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Financial bubbles formed again from "summary" of The Great Crash 1929 by John Kenneth Galbraith

The most significant development in the American economy during the 1920s was the creation of a vast speculative bubble in the stock market. This financial euphoria was driven by a belief in the perpetuity of economic growth and prosperity, leading to a frenzy of stock buying and speculation. As prices soared to unsustainable levels, many investors became convinced that they could not lose, that the market was invincible, and that they were destined to become rich beyond their wildest dreams. The speculative bubble was fueled by easy credit, with brokers and banks extending margin loans to investors at unprecedented levels. This leverage magnified both gains and losses, creating a dangerous spiral of debt that threatened to unravel at any moment. Despite warnings from a few astute observers about the unsustainability of the market's ascent, the majority of investors remained blind to the risks, caught up in the collective delusion of ever-rising stock prices. Inevitably, the bubble burst in October 1929, triggering a devastating stock market crash that wiped out billions of dollars in wealth and plunged the country into the Great Depression. The sudden reversal of fortune shattered the illusions of those who had believed in the infallibility of the market, leaving behind a trail of ruin and despair. The lesson of the crash was clear: financial bubbles are inherently unstable and prone to collapse, leading to catastrophic consequences for those caught in their grip. Despite the painful lessons of the past, history has a way of repeating itself. Financial bubbles have formed again and again in the decades since the Great Crash of 1929, driven by the same mix of greed, speculation, and irrational exuberance that characterized the Roaring Twenties. The cycle of boom and bust continues unabated, with each new bubble sowing the seeds of its own destruction, as investors once again succumb to the seductive lure of easy money and quick riches. And so the tragicomic spectacle of human folly plays out once more, as the eternal dance of greed and fear unfolds in the ever-shifting landscape of the financial markets.
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    The Great Crash 1929

    John Kenneth Galbraith

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