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Top economist: The next global crash is inevitable

Making Money

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Understanding Financial Bubbles: Lessons from History

This chapter explores the characteristics and consequences of financial bubbles, with a focus on historical examples like the dotcom bubble and the 2008 financial crisis. It emphasizes the impact of irrational behaviors such as FOMO and heavy borrowing during euphoric periods, leading to severe economic downturns. The discussion further highlights the importance of credible leadership and effective communication in restoring market confidence during financial crises.

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