“The essence of a speculative bubble is a sort of feedback, from price increases, to increased investor enthusiasm, to increased demand, and hence further price increases. Major speculative bubbles, as I argued in Irrational Exuberance, are always supported by some superficially-plausible popular theory that justifies them, and that is widely viewed as having sanction from some authority figures. These may be called new-era theories.” - Robert Shiller 

"The term mania describes the frenzied pattern of purchases, often an increase in prices accompanied by an increase in trading volumes; individuals are eager to buy before the prices increase further. The term bubble suggests that when the prices stop increasing, they are likely – indeed almost certain – to decline.”-Charles Kindleberger 

Foolishness is always popular, but it seems especially so among a surprisingly large minority of people these days.

The more foolish the subject or theory, the louder and more aggressive the followers of a delusion seem to speak.

For many, continuing the delusion seems much more attractive than the alternative, which is to admit their foolishness, which they cling to proudly. 

Pride indeed goes before a fall.   

And it often blindly follows a more cynical and self-deluded fool into the abyss.

Stocks backed off their highs a bit today.

Gold and silver continued to advance to overhead resistance and to what could be the top of a short-term trading range.

Let's see if they can break out, or if this will continue on a bit longer.

Have a pleasant evening.

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