Charles P. Kindleberger
From 17th-century tulip bulbs to modern cryptocurrency, financial history proves that while the assets change, the cycle of boom and bust remains undeniably consistent.
Financial crises typically unfold in five distinct phases starting with a displacement that triggers a boom and ending in panic and contagion.
Speculative manias are almost always fueled by a rapid expansion of credit that allows asset prices to detach from their fundamental values.
Rational economic behavior is frequently overridden by "mob psychology" where the fear of missing out eventually shifts to a desperate rush for liquidity.