In classical economics, equilibrium is the state where competing influences are balanced — supply equals demand, and the market clears at a natural price.
§A descent through the forces that shape markets, inflate dreams, and burst illusions.
Speculative mania occurs when asset prices detach from intrinsic value, driven by herd behavior and the belief that prices can only rise.
*When leverage is maximized and every participant believes they will exit before the crash, the bubble has reached its terminal phase.
†The cycle begins again. After every crash, new regulations emerge, confidence slowly rebuilds, and the process of price discovery resumes.
§“The only thing we learn from history is that we learn nothing from history.”— Georg Wilhelm Friedrich Hegel
The cycle begins again.