Bubble Graph

} 30. May 2019 milankozlevcar

The bubble graph (financial mania) consists of four basic phases:

Invisibility: who has better access and understands the information.

Awareness: additional funds enetering, raising prices, selling out, strengthening positions. The media publishes positive news.

Mania: news of a “lifetime opportunity”. Explosive growth, irrational inference, uncontrolled flow of enormous amounts of resources, followed by a sudden change and the agony of decline.

The moment of enlightenment: non-rational trust is transformed into a paradigm of perception.

(Jean-Paul Rodrigue)

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