Asset appreciation draws in people that really don’t know anything about the asset. And people start being interested in something because it’s going up, not because they understand it or anything else. The guy next door, who they know is dumber than they are, is getting rich and they aren’t. And their spouse is saying can’t you figure it out too…It is so contagious. — Warren Buffett
Warren Buffett said that in an interview published this week. He’s describing the primary driver behind the next crisis, whenever that is…and every crisis that came before it.
This week marks the 10th anniversary of Lehman’s collapse during the downward spiral of the Financial Crisis. There’s been a lot written about it this week. Some anger, understandably, still exists. The blame game is still being played a decade later. Alternative fixes are still being argued over.
Fear still lingers too.
In the same interview, Buffett said this about fear: Continue Reading…