Extraordinary Popular Delusions and the Madness of Crowds

Extraordinary Popular Delusions and the Madness of Crowds

Charles Mackay
Sep 26, 2003
Harriman House
First published in 1841, Extraordinary Popular Delusions and the Madness of Crowds is often cited as the best book ever written about market psychology. This Harriman House edition includes Charles Mackay's account of the three infamous financial manias - John Law's Mississipi Scheme, the South Sea Bubble, and Tulipomania.

Between the three of them, these historic episodes confirm that greed and fear have always been the driving forces of financial markets, and, furthermore, that being sensible and clever is no defence against the mesmeric allure of a popular craze with the wind behind it.

In writing the history of the great financial manias, Charles Mackay proved himself a master chronicler of social as well as financial history. Blessed with a cast of characters that covered all the vices, gifted a passage of events which was inevitably heading for disaster, and with the benefit of hindsight, he produced a record that is at once a riveting thriller and absorbing historical document. A century and a half later, it is as vibrant and lurid as the day it was written.

For modern-day investors, still reeling from the dotcom crash, the moral of the popular manias scarcely needs spelling out. When the next stock market bubble comes along, as it surely will, you are advised to recall the plight of some of the unfortunates on these pages, and avoid getting dragged under the wheels of the careering bandwagon yourself.
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An old but interesting book

Only if you want something to read... just gives you stories on how the mass crowds can shift markets....
historical crowd behaviour

an interesting read on crowd behaviour and an insight into how market "bubbles" were created in the past based on three famous examples of 19th century boom and bust.
Popular Delusions & The Madness of Crowds

It's ok for a side read, but don't expect anything ground breaking or 'new truths'.

Gives overviews of 3 market manias around the 1800's. Surprising comparisons can of course be made to the recent tech bubble burst.

If history and the markets/investment is of interest then you may like it. One for Peter Bernstein (Against The Gods - the story of risk) fans.