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The essence of finance: greed + leverage + deferred payment
Finance may seem complex, but if you remove all formulas and models, only three things remain:
1. People want to get something for nothing
2. People overestimate the future
3. People are willing to shift risks onto others
That's why history keeps repeating itself:
Tulip Mania
South Sea Bubble
Railway Stocks
Internet
Real Estate
AI/Crypto
Each cycle has a different slogan, but human nature is exactly the same:
"This time is different."
And the truth is:
Human nature never thinks they are repeating the mistakes others have made.