Market optimism led to speculation from "summary" of The Great Crash 1929 by John Kenneth Galbraith
Market optimism, that most enduring and dangerous of all investment emotions, was the driving force behind the speculative fever that gripped the nation in the late 1920s. This relentless optimism, fueled by a seemingly endless upward climb in stock prices, led investors to abandon all rational thought and caution. The prevailing belief was that the stock market could only go up, that wealth could be effortlessly accumulated through the buying and selling of stocks. This irrational exuberance created a feedback loop, where rising prices only served to reinforce the belief that further gains were inevitable. As stock prices soared to dizzying heights, speculation became the preferred means of wealth accumulation for many. The allure of quick and easy profits proved irresistible to investors of all stripes, from seasoned professionals to novice amateurs. The promise of untold riches seemed within reach, if only one could time the market just right. This speculative fervor reached a fever pitch in the months leading up to the crash, as investors clamored to get in on the action before it w...
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