Much has been written about panics and manias, much more than with the most outstretched intellect we are able to follow or conceive; but one thing is certain, that at particular times a great deal of stupid people have a great deal of stupid money.
About this quote
- What does it mean?
- Financial manias are hard to understand, but often involve unwise people with lots of money.
- In plain terms
- Market panics are fueled by stupid people with plenty of cash.
- What can you take from it?
- Be wary when large sums follow irrational trends.
Where it applies
Putting it to work
Questions to consider
- Who is driving the trend?
- Is the money rational?
Another view
It ignores structural causes of bubbles.
More from Walter Bagehot
Men who do not make advances to women are apt to become victims to women who make advances to them.
Permalink to quote #40 No real English gentleman, in his secret soul, was ever sorry for the death of a political economist.
Permalink to quote #42 It is often said that men are ruled by their imaginations; but it would be truer to say they are governed by the weakness of their imaginations.
Permalink to quote #39
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