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Concept

Market bubbles and manias

Market bubbles form when prices detach from underlying value because enough people believe they'll rise further, creating self-fulfilling prophecy until sentiment shifts and everyone rushes toward exits simultaneously. They're not accidents or anomalies—they're the predictable result of herding behavior and leverage, which means they'll keep happening as long as humans trade with borrowed money and listen to each other.

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Zera
Money & Finance
Peri
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