Tulip Mania, South Sea Bubbles, and Other Market Madness
Chapter 2 of A Random Walk Down Wall Street is basically a horror movie. Except the monsters are regular people losing their minds over tulip bulbs, fake companies, and stocks they couldn’t afford. Malkiel walks us through three of history’s wildest financial bubbles, and the pattern is always the same. People get greedy, prices go insane, and then everything falls apart.