Sudip Bandyopadhyay’s Blog

Charles Mackay’s Extraordinary Popular Delusions and the Madness of Crowds, published in 1841, with its vivid description of celebrated financial bubbles is a very powerful book written about market psychology.  The infamous Dutch tulip mania, the South Sea Company bubble and the Mississippi Company bubble mirror the economic hysteria and fluctuations in the global financial [...]

“I can calculate the motions of heavenly bodies, but not the madness of people.” – Sir Issac Newton, 1721, after the South Sea bubble burst.  Sir Issac Newton is said to have lost his life’s savings during the South Sea bubble.  We think to ourselves, “A smart guy like that should have known better”.  It [...]