Farcaster

John Kenneth Galbraith —  “A Short History of Financial Euphoria” (1990)

IMO  all bubbles are similar to crypto market too.

  Core idea: 

Bubbles repeat because collective memory is short and greed is timeless.

  Pattern of every mania. 

1. A “new era” story catches fire (tulips, South Sea, ’29 stocks, junk bonds, dot-coms, crypto, etc.).
2. Prices surge, attracting fresh money and intellect—people mistake rising quotes for genius.
3. Easy credit/leverage turbo-charges gains and blinds participants to risk.
4. The establishment (banks, media, regulators, academics) cheers it on; no one wants the music to stop.
5. Skeptics are ridiculed until the bubble punctures.
6. Crash, blame, amnesia. Repeat next generation.

  Galbraith’s checklist to stay sane

- Doubt any pitch that starts with “this time is different.”
- Track leverage; when it soars, danger is near.
- Remember that wealth ≠ wisdom during a boom.
- Keep cash—and skepticism—ready for the bust; that’s when real bargains appear.

Keep it handy the next time markets sound euphoric.