Please read the below.
This is very interesting.
I have left the blanks in some places as can be seen below.
Read the below with the blanks.
Then read the below and fill the blanks with
A - DUBAI PROPERTY IN 2007
Then again read the bellow and fill the blanks with
B - TECHNOLOGY STOCKS IN 1999
Then again read the below and fill the blanks with
C - SILVER IN 2011
3 - Then read my final summary.
YOU WILL BE AMAZED.
=====================================
The rage for possessing ___ soon caught the middle classes of society and merchants and shopkeepers, even of moderate means , began to vie with each other in the rarity of these ___ and the preposterous prices they paid for them.
The demand for ___ increased so much in the year ___ , that regular marts for their sale were established on the Stock Exchange.
The stock jobbers , ever on the alert for a new speculation , dealt largely in ___ , making use of all the means they so well knew how to employ , to cause fluctuations in prices.
At first, as in all these gambling mania, confidence was at its height, and everybody gained.
The ___ jobbers speculated in the rise and fall of the ____ , and made large profits by buying when prices fell and selling out when prices rose. Many individuals grew suddenly rich. A golden bait hung temporarily out before the people , and , one after the other , they rushed to the ____ marts , like flies around a honey pot.
Nobles, citizens, farmers , mechanics, seamen , footmen, maidservants, even chimney sweeps and old clothes women , dabbled in ____.
Foreigners became smitten with the same frenzy, and money poured into ____ from all directions.
At last , however, the prudent began to see that this folly could not last for ever. Rich people no longer bought the ____ to keep them in their ____, but to sell them again at a cent percent profit.
It was seen that somebody must loose fearfully in the end. As this conviction spread, prices fell, and never rose again.
Confidence was destroyed, and a universal panic seized upon the dealers.
Defaulters were announced day after day in all towns of ____. Hundreds , who , a few months previously , had begun to doubt that there was such a thing as poverty in the land , suddenly found themselves the possessors of a few ____, which nobody would buy, even though they offered them at ____ of the the sums they had paid for them.
Many who, for a brief season , had emerged from the humbler walks of life , were cast back into their original obscurity. Substantial merchants were reduced almost to beggary, and many a representative of a noble line saw the fortunes of his house ruined beyond redemption.
==================================
Summary
When you read the same article , with the blanks substituted by Dubai Real Estate in 07, Tech Stocks in 1999 and Silver in 2011, it just felt the same.
It does feel the same and it really is.
In reality
THE ARTICLE ABOVE IS FROM CHAPTER NO 3 FROM THE BOOK - EXTRAORDINARY POPULAR DELUSIONS AND THE MADNESS OF THE CROWDS BY CHARLES MACKAY AND THE TITLE OF CHAPTER NO 3 IS TULIP-MANIA AND THE YEAR WAS 1634-37.
If you fill the blanks with the word TULIP , you will read the chapter exactly as it in the book.
But the point of this experiment was to prove that human nature has always been the same. The collective mood of the crowd swings between greed and fear - optimism and pessimism. These swings give rise to the Tulipmania of 1637, The Nasdaq Tech bubble of 1999, the Dubai Real Estate bubble of 2007 and the Silver bubble of 2011.
Is is just so simple.
There is no complex model here.
It is just a bunch of humans who start rationally - then go nuts and finally end in tears - just like they did in 1637, 1999, 2007 and now in 2011/12 when the Silver bubble will burst.
This is very interesting.
I have left the blanks in some places as can be seen below.
Read the below with the blanks.
Then read the below and fill the blanks with
A - DUBAI PROPERTY IN 2007
Then again read the bellow and fill the blanks with
B - TECHNOLOGY STOCKS IN 1999
Then again read the below and fill the blanks with
C - SILVER IN 2011
3 - Then read my final summary.
YOU WILL BE AMAZED.
=====================================
The rage for possessing ___ soon caught the middle classes of society and merchants and shopkeepers, even of moderate means , began to vie with each other in the rarity of these ___ and the preposterous prices they paid for them.
The demand for ___ increased so much in the year ___ , that regular marts for their sale were established on the Stock Exchange.
The stock jobbers , ever on the alert for a new speculation , dealt largely in ___ , making use of all the means they so well knew how to employ , to cause fluctuations in prices.
At first, as in all these gambling mania, confidence was at its height, and everybody gained.
The ___ jobbers speculated in the rise and fall of the ____ , and made large profits by buying when prices fell and selling out when prices rose. Many individuals grew suddenly rich. A golden bait hung temporarily out before the people , and , one after the other , they rushed to the ____ marts , like flies around a honey pot.
Nobles, citizens, farmers , mechanics, seamen , footmen, maidservants, even chimney sweeps and old clothes women , dabbled in ____.
Foreigners became smitten with the same frenzy, and money poured into ____ from all directions.
At last , however, the prudent began to see that this folly could not last for ever. Rich people no longer bought the ____ to keep them in their ____, but to sell them again at a cent percent profit.
It was seen that somebody must loose fearfully in the end. As this conviction spread, prices fell, and never rose again.
Confidence was destroyed, and a universal panic seized upon the dealers.
Defaulters were announced day after day in all towns of ____. Hundreds , who , a few months previously , had begun to doubt that there was such a thing as poverty in the land , suddenly found themselves the possessors of a few ____, which nobody would buy, even though they offered them at ____ of the the sums they had paid for them.
Many who, for a brief season , had emerged from the humbler walks of life , were cast back into their original obscurity. Substantial merchants were reduced almost to beggary, and many a representative of a noble line saw the fortunes of his house ruined beyond redemption.
==================================
Summary
When you read the same article , with the blanks substituted by Dubai Real Estate in 07, Tech Stocks in 1999 and Silver in 2011, it just felt the same.
It does feel the same and it really is.
In reality
THE ARTICLE ABOVE IS FROM CHAPTER NO 3 FROM THE BOOK - EXTRAORDINARY POPULAR DELUSIONS AND THE MADNESS OF THE CROWDS BY CHARLES MACKAY AND THE TITLE OF CHAPTER NO 3 IS TULIP-MANIA AND THE YEAR WAS 1634-37.
If you fill the blanks with the word TULIP , you will read the chapter exactly as it in the book.
But the point of this experiment was to prove that human nature has always been the same. The collective mood of the crowd swings between greed and fear - optimism and pessimism. These swings give rise to the Tulipmania of 1637, The Nasdaq Tech bubble of 1999, the Dubai Real Estate bubble of 2007 and the Silver bubble of 2011.
Is is just so simple.
There is no complex model here.
It is just a bunch of humans who start rationally - then go nuts and finally end in tears - just like they did in 1637, 1999, 2007 and now in 2011/12 when the Silver bubble will burst.
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