STREET DOGS: Stock market investors suffer from delusions of crowds
In studies of herd mentality, Sigmund Freud identified features that are common in bull market attitudes
From Devil Take the Hindmost by Edward Chancellor
In his introduction to the 1932 edition of Mackay’s Extraordinary Popular Delusions and the Madness of Crowds, Bernard Baruch suggests that US speculators in 1929 displayed the attributes of a crowd psychology. He cites the German playwright Schiller’s dictum that “anyone taken as an individual is tolerably sensible and reasonable — as a member of a crowd, he at once becomes a blockhead”...