The Delusions of Crowds

Historical Context and Significance

"The Delusions of Crowds" by William Bernstein emerged at a turning point, when financial markets became arenas not only for calculated strategies but also for waves of mass psychology. Like a skilled anatomist, the author dissects the nature of collective illusions that permeate the economic history of humanity, showing how irrational passions and fears can turn markets into theaters of the absurd. Inspired by classic works on crowd psychology, Bernstein creates a vibrant mosaic of examples of financial bubbles and crashes, from tulip mania to modern crises, thus placing his book among the works that shape critical thinking in both investors and the general public. His work has become not only a warning for future generations but also a cultural marker of an era when faith in rationality gave way to the recognition of the power of human delusions. The book has profoundly influenced the perception of financial markets, enriching the language and thinking of modern society with images and metaphors of mass madness, and has become a handbook for those seeking to understand the hidden mechanisms of collective behavior.