Comments on: A History of Investment Bubbles

By: Shuttle to OAK

Shuttle to OAK — Fri, 20 Jan 2012 10:36:14 +0000

Thanks for sharing such a great and valuable information with us.

By: PHP Training

PHP Training — Wed, 28 Dec 2011 11:17:56 +0000

Thanks for sharing such a valuable information

By: Ken Faulkenberry

Ken Faulkenberry — Wed, 13 Oct 2010 03:22:44 +0000

This is the best historical summary of bubbles I have ever seen. Kudos for your excellent research. Here are some great ways to avoid investment bubbles in the future: http://blog.ArborInvestmentPlanner.com/2009/10/how-to-avoid-investment-bubbles.

By: Sandeep

Sandeep — Fri, 13 Aug 2010 04:51:25 +0000

I really enjoyed your post. I have read over a few other posts you have up and I will say you have done a great job of blogging. I will be looking for new post daily…Keep up the good work! I hope you will also find my blog interesting.
Sandeep´s last blog ..Circumstances that affect the securities rate

By: Anne Hallaway

Anne Hallaway — Tue, 25 May 2010 13:13:49 +0000

Bubbles are definitely a reality of the world. Maybe cycles is a better word, but cycles often end suddenly because of the way human psychology works. We want to believe the cycle is still heading upward so our perception is clouded until we can no longer possibly ignore reality and then the bubble pops all once, rather than calmy subsiding. Those who have a sense for human manias and understand when mania is clouding judgement, are the people who get rich from bubbles.
Anne Hallaway´s last blog ..Selling Gold Jewelry

By: MyLifeROI

MyLifeROI — Mon, 08 Feb 2010 18:07:53 +0000

@Roger,

Thanks for the investopedia link on the tulip!

I like this one sentence in particular: Further, combining and slicing up risky investments does not make them less risky.

How true!

By: MyLifeROI

MyLifeROI — Mon, 08 Feb 2010 18:06:26 +0000

@DC @ Dollar Commentary,

Keynesian economics gained a lot of popularity in the 1950′s or so. I would feel pretty safe in asserting that there was a long history of ups/downs before then.

By: Roger

Roger — Mon, 01 Feb 2010 01:19:51 +0000

@Kosmo: If Investopedia is to be believed, at the peak of ‘Tulip Mania’, a single bulb could be traded for a rather substantial estate: http://www.investopedia.com/features/crashes/crashes2.asp Kind of makes crashes based on the belief that real estate will rise by double digits each year seem downright sensible. Speaking of which, here are the take aways I got from our past two bubbles:

Dot Com: While new technology can change how we earn, spend, and manage money, it’s not going to change things overnight; systematic change takes time. Also, ‘Build it and they will come’ makes a better movie slogan than a business plan.

Real Estate: No investment is immune from bubbles and crashes, no matter how much you might argue that ‘it’s never gone done in value’. Further, combining and slicing up risky investments does not make them less risky; if something goes wrong, you can still end up losing money.

I’m sure there are other lessons; there was a glut of books analyzing the dot com boom, and already there are plenty of books that attempt to slice and dice the real estate bubble. Hopefully, we can learn from this and keep from having another bubble (for a decade or two, at least).
Roger´s last blog ..Net Worth Update: Another Month Gone

By: DC @ Dollar Commentary

DC @ Dollar Commentary — Thu, 21 Jan 2010 02:34:10 +0000

To understand why there are so many ups and downs in the modern economy of not only America but most sufficiently advanced coutries around the world, one needs only to learn about a man named John Maynard Keynes. This man is responsible for most of the official economic policies that countries currently operate on. Google him.

By: Financial Samurai

Financial Samurai — Wed, 20 Jan 2010 21:33:24 +0000

Thanks for chronolizing our history of bubbles! The one good thing is, there will be another one (forget gold), and that should all make us excited that another big wealth opp is on the horizon!