Key Ideas

1. Manias, panics, and crashes are recurring events in financial markets, and they have devastating effects on economies.

2. Manias are characterized by irrational exuberance and an excessive increase in asset prices.

3. Panics occur when investors suddenly become fearful and try to sell their assets in large quantities, causing a sharp decline in prices.

4. Crashes are the result of a panic, where asset prices collapse rapidly and cause widespread financial distress.

5. Manias, panics, and crashes are driven by psychological factors, such as greed, fear, and herd behavior.

6. The bubble ....
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Quiz