John Kenneth Galbraith on financial bubbles

Galbraith, 1997:

Whether of tulip bulbs, of John Law's Louisiana promotions, of the stock of the South Seas Company or of RCA, the great speculative favorite in the stock market boom of the late 1920s, or of the deeply redundant real estate developments in the 1980s, prices were going up. The mentally vulnerable, of whom there is always a more than adequate reserve, were attracted and responded. Their response caused prices to go up more; this price rise then confirmed them in their superior wisdom and foresight.

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