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Financial bubbles – The daily blog of behavioral and cognitive economics

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Financial bubbles – The daily blog of behavioral and cognitive economics

How to Find a Bubble

WSJ recently showed us four stock market declines: In their headline, they asked, “Will Stocks Crash in 2026?” With a bubble defined as “…a large price decline after a large price increase, they might also have asked if a bubble will soon burst. Bubble History. The First Global Stock Market Bubble.A legend in monetary history, John Law helped to create the first global stock market bubble from 1718 to 1720. Funding the Mississippi Company’s expansion, Law controlled a bank that could issue the money that investors then used to buy shares. When soaring demand reversed, the bubble popped. ….[READ]

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