Dec. 19, 2025
Economic Bubbles and the Human Psychology Behind Them is a compelling exploration of how financial markets are shaped not just by numbers, but by deeply human behaviors and cognitive biases. This presentation traces the recurring arc of economic bubbles—from the initial spark of innovation and excitement, through phases of FOMO, euphoria, and risky leverage, to the inevitable cracks, panic, collapse, and aftermath. Drawing on historic examples like Tulip Mania, the Dot-Com Bubble, and the Crypto Boom, it reveals how stories and emotions consistently override rational analysis, leading even experienced investors astray. The slides break down the psychological forces at play: fear of missing out, herd behavior, overconfidence, confirmation bias, loss aversion, narrative fallacy, and recency bias. Each bias is illustrated with vivid examples and practical insights, showing how these patterns repeat across generations and asset classes. The presentation also connects these financial beha…