

#4392
Mentioned in 6 episodes
A short history of financial euphoria
Book • 1990
In this book, John Kenneth Galbraith traces the history of significant speculative episodes in the economy, from the tulip craze of the seventeenth century to the recent plague of junk bonds.
He exposes how normally sane people display reckless behavior in pursuit of profit, attributing these behaviors to a 'notoriously short' financial memory that leads to market collapses.
Galbraith emphasizes that recognizing these patterns can help guard against future recessions and improve financial stability.
The book underscores the cyclical nature of financial euphoria, driven by mass psychology and leverage, and warns against the illusion that wealth is a measure of intelligence.
He exposes how normally sane people display reckless behavior in pursuit of profit, attributing these behaviors to a 'notoriously short' financial memory that leads to market collapses.
Galbraith emphasizes that recognizing these patterns can help guard against future recessions and improve financial stability.
The book underscores the cyclical nature of financial euphoria, driven by mass psychology and leverage, and warns against the illusion that wealth is a measure of intelligence.
Mentioned by
Mentioned in 6 episodes
Mentioned by 

as a book he read in the mid-90s.


Howard Marks

195 snips
Behind The Memo: The Impact of Debt with Howard Marks and Morgan Housel
Recommended by 

for understanding market booms and speculative events.


Kyle Grieve

37 snips
TIP673: A Short History Of Financial Euphoria w/ Kyle Grieve
Mentioned by 

to illustrate generational shifts in investment philosophy.


Brian McCullough

17 snips
126. (Ch. 8) How the Dotcom Bubble Happened
Mentioned by 

, referencing his book on financial euphoria.


Howard Marks

Think smarter, not harder with Howard Marks
Mentioned by 

to illustrate generational turnover in investing philosophy.


Brian McCullough

(IHP) How The Dotcom Bubble Happened
Recommended by 

as a book that gave him a great feeling for the psychological fluctuations that dominate the market.


Howard Marks

169: Unlocking Investment Wisdom - With Howard Marks, Co-Founder of Oaktree Capital Management
Mentioned by 

when discussing the "zero stroke" mental disorder during the hyperinflation.


Joe Weisenthal

Zach Carter on the Real Story of Weimar Hyperinflation
Recommended by 

as a short book on financial euphoria.


Howard Marks

Ep. 36: Howard Marks
Mentioned by ![undefined]()

as a refresher on behaviors contributing to inflating useless items.

Bill Smead

The Smead Book List - Spring 2025