Excellent Saturday long read:
Manias and Mimesis: Applying René Girard to Financial Bubbles
by @byrneseyeview and @TobiasAHuberhttps://www.scribd.com/document/420334402/Manias-and-Mimesis-Applying-Rene-Girard-to-Financial-Bubbles?source=post_page--------------------------- …
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8. The price gets so extravagant that asset holders begin to realize that the upside from further price appreciation is outweighed by the downside, so they sell 9. Price ceases to rise 10. No more new entrants 11. Price falls further 12. Whole thing goes in reverse.
I don't think we need Rene Girard, mimetic theory, and an animal sacrifice to explain this.
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You used Girard’s theory as soon as: "3. People hear that X has run up in price and others are making money holding it".
Thanks. Twitter will use this to make your timeline better. UndoUndo
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