Rampant optimism or irrational exuberance lead to market bubbles. Market bubbles are a fusion of millions of investors’ emotional responses, mostly greed. Market bubbles are not a recent phenomenon, nor are they uncommon. The Black Tulip is about one of the most impressive market bubbles that occurred in Holland in the 1630s. If you think you would be tempted by rampant financial optimism consider a self-binding scheme.
