🧠 Bonus.Want to protect yourself from the next bubble?.Learn to spot Minsky’s 5 stages:.1- Displacement.2-Boom.3-Euphoria.4-Profit-taking.5-Panic. Stay rational. Study history. And always invest in what you understand.

History teaches us to be cautious of bubbles and boom-bust cycles. Don’t fear markets — but stay informed, stay rational. 🎯 Learn before you invest. 💬 "Never invest in a business you cannot understand." — Warren Buffett.

💥 Why do bubbles repeat?.Economist Hyman Minsky explained it best:.Stability breeds instability. Credit booms → euphoria → crash. Financial markets are powerful — but dangerous when driven by irrationality and intervention.

🖥️ DotCom Bubble (1995–2000).Internet startups with no profits were wildly overvalued. The NASDAQ rose 582%, then crashed 75%. Hype > revenue. Investors lost billions.

Mississippi Bubble (France, 1720).John Law's company promised colonial riches. The French printed money to fund it. Speculation soared and collapsed. The economy was shattered. Trust in paper money was lost for decades.

South Sea Bubble (1720).A British trade company absorbed public debt in exchange for shares. Speculation drove prices 10x. Insiders sold. Public panicked. Market crashed. The illusion of endless profit broke.

🌷 Tulipmania (1630s).Tulips became a luxury good in the Netherlands. Prices for rare bulbs exploded. In 1637, demand disappeared. Prices collapsed. Contracts failed. It was one of the first recorded market bubbles.

Let’s talk bubbles:.When asset prices rise far above their true value due to hype and speculation, we call it a financial bubble.

Financial markets serve 3 key functions:.📌 Price discovery.💧 Liquidity.📉 Lower transaction costs.They channel savings into investment and drive economic growth.

In 1602, the Dutch East India Company created the first publicly traded company. The Amsterdam Stock Exchange let ordinary people invest. Capitalism gained its bloodstream: liquid markets + shared risk = global expansion.

The modern financial era began in Renaissance Italy. Florence, Venice & Genoa introduced innovations like:.✔️ Bills of exchange.✔️ Double-entry bookkeeping.✔️ Early joint ventures.The roots of modern banking were born.

Financial markets aren't new. They existed in Mesopotamia, where clay tablets recorded loans and interest. Coins emerged in ancient Turkey. Credit systems existed in Islamic societies. Markets are as old as civilization itself.

The Heart, Blood, and Illness of Capitalist Societies. Financial markets fuel capitalism — but when distorted, they can infect the system. Here’s a short journey through their history, bubbles, and crises👇.#Finance #Economy.