This is a good read. https://www.amazon.com/Extraordinary-Popular-Delusions-Charles-Mackay/dp/0486432238 https://www.amazon.com/Extraordinary-Popular-Delusions-

This is a good read. https://www.amazon.com/Extraordinary-Popular-Delusions-Charles-Mackay/dp/0486432238 https://www.amazon.com/Extraordinary-Popular-Delusions-Charl.... Market participants often do know there's a bubble. However, if your neighbor keeps making more and more money selling tulips (that was a thing), then you will be tempted to buy some tulips yourself, knowing full well that you are commanding an absurd price. Bubbles can be more "musical chairs" than rational pricing.