Stock market bubbles don't grow out of thin air. They have a solid basis in reality - but reality as distorted by a misconception. Under normal conditions misconceptions are self-correcting, and the markets tend toward some kind of equilibrium. Occasionally, a misconception is reinforced by a trend prevailing in reality, and that is when a boom-bust process gets under way. Eventually the gap between reality and its false interpretation becomes unsustainable, and the bubble bursts.
George SorosRelated topics
air basis bubble equilibrium false gap interpretation kind market misconception normal process reality solid stock thin trend under way conditions boom-bust bubblesRelated quotes
The problem, often not discovered until late in life, is that when you look for things like love, meaning, motivation, it implies they are sitting behind a tree or under a rock. The most successful people recognize, that in life they create their own love, they manufacture their own meaning, they generate their own motivation. For me, I am driven by two main philosophies, know more today about the world than I knew yesterday. And along the way, lessen the suffering of others. You'd be surprised how far that gets you.
Neil deGrasse Tyson
There is only one thing that arouses animals more than pleasure, and that is pain. Under torture you are as if under the dominion of those grasses that produce visions. Everything you have heard told, everything you have read returns to your mind, as if you were being transported, not toward heaven, but toward hell. Under torture you say not only what the inquisitor wants, but also what you imagine might please him, because a bond (this, truly, diabolical) is established between you and him.
Umberto Eco
A great part of its theories derives an additional charm from the peculiarity that important propositions, with the impress of simplicity on them, are often easily discovered by induction, and yet are of so profound a character that we cannot find the demonstrations till after many vain attempts; and even then, when we do succeed, it is often by some tedious and artificial process, while the simple methods may long remain concealed.
Carl Friedrich Gauss
The graph does show one tremendous rise and collapse which stands out starkly from all the other fluctuations. This is commonly called the "new era" stock market of 1927-33. The striking feature of this phenomenon was that the new era existed solely in the minds of market speculators. The whole episode, in retrospect, now seems to have been one of those rare manifestations of mass financial madness which we used to study in our history books under the titles of "the South Sea Bubble", "the Mississippi Bubble" and so on.
Benjamin Graham
The way in which I know Christianity is true is first and foremost on the basis of the witness of the Holy Spirit in my heart. And this gives me a self-authenticating means of knowing Christianity is true wholly apart from the evidence. And therefore, even if in some historically contingent circumstances the evidence that I have available to me should turn against Christianity, I do not think that this controverts the witness of the Holy Spirit.
William Lane Craig
