Charles Mackay

Extraordinary Popular Delusions and the Madness of Crowds

1. IDEA 1

   Whole crowds can lose their judgement

   Mackay collects stories of times when large numbers of people believed in something foolish all at once. He argues that people think in herds, and often recover their good sense slowly, one person at a time.

2. IDEA 2

   John Law's scheme gripped France

   Mackay tells how John Law's Mississippi Company in France sold shares that rose wildly on promises of riches from America. When confidence collapsed, many people who had borrowed and bought at high prices were ruined.

3. IDEA 3

   The South Sea Bubble burst

   Mackay describes how shares in England's South Sea Company soared as politicians and ordinary investors rushed in. Dozens of doubtful companies appeared to catch the excitement, and the crash that followed caused great hardship.

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