Extraordinary Popular Delusions & the Madness of Crowds

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Extraordinary Popular Delusions & the Madness of Crowds

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A perfect repackaging of the classic work about grand-scale madness, major schemes, and bamboozlement–and the universal human susceptibility to all three. This informative, amusing collection encompasses a broad range of manias and deceptions, from witch burnings to the Fantastic Crusades to the prophecies of Nostradamus.Amazon.com Review
Why do otherwise intelligent individuals form seething masses of idiocy when they engage in collective action? Why do financially sensible people jump lemming-like into hare-brained speculative frenzies–only to jump broker-like out of windows when their fantasies dissolve? We may reflect that the Fantastic Crash of 1929, junk bonds of the ’80s, and over-valued high-tech stocks of the ’90s are peculiarly 20th century aberrations, but Mackay’s classic–first published in 1841–shows that the madness and confusion of crowds knows no limits, and has no temporal bounds. These are extraordinarily illuminating,and, sorry to say, entertaining tales of chicanery, greed and naivete. Essential reading for any student of human scenery or the transmission of thoughts.

In fact, cases such as Tulipomania in 1624–when Tulip bulbs traded at a privileged fee than gold–suggest the being of what I would dub “Mackay’s Law of Mass Action:” when it comes to the effect of social behavior on the intelligence of individuals, 1+1 is regularly less than 2, and sometimes considerably less than 0.

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