A stock market bubble is a type of economic bubble taking place in stock markets when market participants drive stock prices above their value in relation to some system of stock valuation.
An economic bubble is a period when current asset prices greatly exceed their intrinsic valuation, being the valuation that the underlying long-term fundamentals justify. Bubbles can be caused by overly optimistic projections about the scale and sustainability of growth, and/or by the belief that intrinsic valuation is no longer relevant when making an investment. They have appeared in most asset classes, including equities, commodities, real estate, and even esoteric assets. Bubbles usually form as a result of either excess liquidity in markets, and/or changed investor psychology. Large multi-asset bubbles, are attributed to central banking liquidity.
John Law was a Scottish-French economist who distinguished money, a means of exchange, from national wealth dependent on trade. He served as Controller General of Finances under the Duke of Orleans, who was regent for the juvenile Louis XV of France. In 1716, Law set up a private Banque Générale in France. A year later it was nationalised at his request and renamed as Banque Royale. The private bank had been funded mainly by John Law and Louis XV; three-quarters of its capital consisted of government bills and government-accepted notes, effectively making it the nation's first central bank. Backed only partially by silver, it was a fractional reserve bank. Law also set up and directed the Mississippi Company, funded by the Banque Royale. Its chaotic collapse has been compared to the 17th-century tulip mania parable in Holland. The Mississippi bubble coincided with the South Sea bubble in England, which allegedly took ideas from it. Law was a gambler who would win card games by mentally calculating odds. He propounded ideas such as the scarcity theory of value and the real bills doctrine. He held that money creation stimulated an economy, paper money was preferable to metal, and dividend-paying shares a superior form of money. The term "millionaire" was coined for beneficiaries of Law's scheme.
The Drummer of Tedworth is a case of an alleged poltergeist manifestation in the West Country of England by Joseph Glanvill, from his book Saducismus Triumphatus (1681).
Tulip mania was a period during the Dutch Golden Age when contract prices for some bulbs of the recently introduced and fashionable tulip reached extraordinarily high levels. The major acceleration started in 1634 and then dramatically collapsed in February 1637. It is generally considered to have been the first recorded speculative bubble or asset bubble in history. In many ways, the tulip mania was more of a then-unknown socio-economic phenomenon than a significant economic crisis. It had no critical influence on the prosperity of the Dutch Republic, which was one of the world's leading economic and financial powers in the 17th century, with the highest per capita income in the world from about 1600 to about 1720. The term tulip mania is now often used metaphorically to refer to any large economic bubble when asset prices deviate from intrinsic values.
A catchphrase is a phrase or expression recognized by its repeated utterance. Such phrases often originate in popular culture and in the arts, and typically spread through word of mouth and a variety of mass media. Some become the de facto or literal "trademark" or "signature" of the person or character with whom they originated, and can be instrumental in the typecasting of a particular actor. Catchphrases are often humorous, but are never long enough or structured enough to be jokes in themselves. However, a catchphrase can be the punch line of a joke, or a callback reminder of a previous joke.
A witch doctor was originally a type of healer who treated ailments believed to be caused by witchcraft. The term is now more commonly used to refer to healers, particularly in regions which use traditional healing rather than contemporary medicine.
The expression collective behavior was first used by Franklin Henry Giddings and employed later by Robert Park and Ernest Burgess, Herbert Blumer, Ralph H. Turner and Lewis Killian, and Neil Smelser to refer to social processes and events which do not reflect existing social structure, but which emerge in a "spontaneous" way. Use of the term has been expanded to include reference to cells, social animals like birds and fish, and insects including ants. Collective behavior takes many forms but generally violates societal norms. Collective behavior can be tremendously destructive, as with riots or mob violence, silly, as with fads, or anywhere in between. Collective behavior is always driven by group dynamics, encouraging people to engage in acts they might consider unthinkable under typical social circumstances.
The Madness of the Crowds is the fourth studio album by American pop punk band Ace Troubleshooter but their first on BEC's parent company, Tooth & Nail Records. It was released on June 5, 2002 in the UK and June 18 on the US.
Charles Mackay was a Scottish poet, journalist, author, anthologist, novelist, and songwriter, remembered mainly for his book Extraordinary Popular Delusions and the Madness of Crowds.
The Mississippi Company was a corporation holding a business monopoly in French colonies in North America and the West Indies. In 1717, the Mississippi Company received a royal grant with exclusive trading rights for 25 years. The rise and fall of the company is connected with the activities of the Scottish financier and economist John Law who was then the Controller General of Finances of France. Though the company itself started to become profitable and remained solvent until the collapse of the bubble, when speculation in French financial circles and land development in the region became frenzied and detached from economic reality, the Mississippi bubble became one of the earliest examples of an economic bubble.
"Irrational exuberance" is the phrase used by the then-Federal Reserve Board chairman, Alan Greenspan, in a speech given at the American Enterprise Institute during the dot-com bubble of the 1990s. The phrase was interpreted as a warning that the stock market might be overvalued.
The Wisdom of Crowds: Why the Many Are Smarter Than the Few and How Collective Wisdom Shapes Business, Economies, Societies and Nations, published in 2004, is a book written by James Surowiecki about the aggregation of information in groups, resulting in decisions that, he argues, are often better than could have been made by any single member of the group. The book presents numerous case studies and anecdotes to illustrate its argument, and touches on several fields, primarily economics and psychology.
A financial crisis is any of a broad variety of situations in which some financial assets suddenly lose a large part of their nominal value. In the 19th and early 20th centuries, many financial crises were associated with banking panics, and many recessions coincided with these panics. Other situations that are often called financial crises include stock market crashes and the bursting of other financial bubbles, currency crises, and sovereign defaults. Financial crises directly result in a loss of paper wealth but do not necessarily result in significant changes in the real economy.
Events from the year 1720 in Great Britain.
Exchange Alley or Change Alley is a narrow alleyway connecting shops and coffeehouses in an old neighbourhood of the City of London. It served as a convenient shortcut from the Royal Exchange on Cornhill to the Post Office on Lombard Street and remains as one of a number of alleys linking the two streets. Shops once located in Exchange Alley included ship chandlers, makers of navigation instruments such as telescopes, and goldsmiths from Lombardy in Italy.
The Madness of Crowds is the second album by Sleepthief, a free improvisation trio led by German jazz saxophonist Ingrid Laubrock with British pianist Liam Noble and American drummer Tom Rainey. It was recorded in 2010 and released by Intakt Records. The song titles as well as the album's title are taken from the book Extraordinary Popular Delusions and the Madness of Crowds by Scottish writer Charles Mackay.
David Meredith Reese (1800–1861) was an American physician and skeptic.
The Stockwell ghost, also known as the Stockwell poltergeist, was an alleged case of poltergeist disturbance in Stockwell, London, England, that occurred in 1772. It was later exposed as a hoax.
The Madness of Crowds may refer to:
