Herd behavior is one cause of economic bubbles

Euphoric narratives are just one indicator of an economic bubble

A conversation with investor Jeremy Grantham outlines the indicators he watches for bubbles, including extreme valuations. He then compares those signals to today’s AI boom, arguing it shows several early signs of classic speculative excess.

The lifecycle of a financial bubble often follows a predictable pattern

Economist Hyman Minsky originated what became a five-stage model of an economic bubble: a new “displacement,” a rapid boom, euphoric speculation, early profit-taking by insiders, and finally panic selling. From Japan’s 1980s real-estate surge to the 2008 crash, the pattern repeats across eras and assets.

How chaos helps explain why small market corrections can produce major economic instability

Oxford University complex systems professor Doyne Farmer discusses how predictions from many economic models are overly weighted toward simple relationships, such as supply and demand, and external shocks, such as the COVID-19 pandemic. However, real-world macroeconomic systems involve public and private actors interacting, producing feedback loops and cascading effects that resemble the oscillatory behavior seen in chaotic systems.

Bubbles can exist in markets for collectibles, not just industries and technology

This podcast tells how "Magic: The Gathering" faced its own speculative bubble as rare cards surged in resale value—risking a Beanie Baby-style crash. It follows how the game’s creators tried to engineer a system to keep a collectibles market from collapsing.

In the aftermath of the 2008 financial crisis, the Fed began a program of quantitative easing

This program injected trillions of dollars of new money into financial markets to stimulate the economy. The move catalyzed an 11-year bull run and was repeated during the pandemic. Experts argue such power could worsen wealth inequality and contribute to bubbles in housing and finance.

The role stories play in mass economic trends like bitcoin, crashes

Economics is dominated by numbers, but stories play a huge role in the emotional shifts seen within macroeconomic trends. For example, bitcoin is not just a cost-benefit winner, but a compelling tale of decentralization and independence. This is a 20-minute summary of Nobel prize-winning economist Robert Shiller's "Narrative Economics."

There’s a psychological explanation for ‘FOMO,’ or the fear of missing out

This video breaks down FOMO—what it is, how it works, and why it happens—showing how social comparison and uncertainty trigger anxiety that pushes people toward risk-taking and constant checking behaviors.

The South Sea Bubble was an 18th-century scandal that redefined speculation

This video illustrates how the South Sea Company in Britain sparked a stock boom in 1720, with promises of huge trading profits, driving shares to unprecedented heights before a sudden crash wiped out the fortunes of investors—including Isaac Newton, who lost an estimated £20K.

Bank runs, explained

A major feature of the modern financial system is trust: if an institution loses it, customers will quickly withdraw deposits and stockholders will sell their shares. This digestible animated video looks into the nature and history of bank runs and...

Bear raiding is a manipulative tactic to bring a stock price down—and part of why short selling can be controversial

Bear raids occur when short sellers use manipulative tactics—like spreading false rumors or coordinating trades—to artificially drive down a stock's price and profit from short positions. Although bear raids are an illegal form of market manipulation, they can spook investors, prompting large selloffs of shares and causing a company's value to plummet. As a result, investors may be hesitant to invest in the company in the future, creating a feedback loop of stock downturn.

The global horse market is worth about $400B

In this podcast episode from a new series on horses, Freakonomics explores the market around buying and selling some of the world's top sport horses, and the nebulous forces that make them so valuable.

Ray Dalio argues that American capitalism is broken, citing economic factors like a growing wealth divide

Dalio also points to stalling income growth, weak healthcare systems, and poor educational outcomes when arguing that American capitalism needs serious reform. However, critics point out that Dalio has amassed a large fortune by running the world's largest hedge fund and question whether Dalio really wants economic reform.

The psychological aspect of deflation makes it difficult for policymakers to stabilize the economy

That psychological aspect is referred to as "the deflationary spiral." When prices start decreasing, people tend to hold on to their money to pay the lowest prices. But as prices start stabilizing, people resist increasing prices. (Some users may experience a paywall.)

Raising interest rates can help control inflation

While controlling a complex and dynamic economy is difficult, interest rates—more specifically, the rate at which banks lend each other money overnight—are a powerful tool. Generally, raising the rate makes purchases more expensive and cools an overheated economy.

How public policy shapes demographic trends

This IMF podcast explores the population booms and busts throughout human history. According to Harvard economist and demographer David Bloom, it took more than 50,000 years for the world population to reach 1 billion. But since 1960, we have added...

Oil shocks, war, and the 1970s crisis that remade American energy and economics

The oil crises of the 1970s—fueled by Middle East conflict and OPEC’s dominance—triggered inflation, price controls, and policy failure. But they also accelerated fracking, alternative energy, and the rise of free-market economics.

Herd behavior has been seen in 193-million-year-old dinosaur fossils

Scientists excavated eggs, juveniles, and adult remains in Patagonia, all arranged by age group. The organization into structured groups may have contributed to evolutionary success by consolidating eggs in one location to make defending them easier.

China has a ‘ghost town of abandoned mansions’

This video shows how China’s property bubble deflated as new-home sales collapsed and more than 50 developers defaulted. In Shenyang, an abandoned “ghost town” reveals the fallout of a boom built on debt and overbuilding that could no longer be sustained.

Network effects are the economic term for a good or service's popularity

When goods or services become especially popular, firms that provide that good or service become dominant in the market—which can ultimately lead to a monopoly.

The prices on prediction markets reflect how the collective forecasts future outcomes

On prediction markets, bettors bid up or down the price of contracts based on what they expect an event's outcome to be. Bettors bid up prices when they think an event is more likely to occur than the current contract price shows, so they buy the contracts, pushing the price higher. They bid down prices by selling these contracts when they believe an event is less likely to occur, driving the price down due to supply and demand.

Herd immunity works by slowing down viral transmission until it dies out

Herd immunity refers to a population whose vaccination rates against a given virus are high enough that transmission dies out before the bug can find the next unvaccinated person to infect. Rates needed to achieve this depend on how contagious a virus is. This video gives a quick visual explanation of how it works.

Why stories about helium 'running out' indicate market volatility rather than scarcity

Only a few locations on Earth contain natural gas reserves with sufficiently high helium concentrations to make their extraction commercially viable, and geopolitical conflicts in these areas significantly affect helium production. This makes cost a major impediment to helium availability, particularly for scientific research, amid growing demand and ongoing depletion of reserves that took billions of years to form.

A ‘gold bug’ is a person who is bullish on gold as an investment

"Gold bugs" often argue that fiat money allows governments to engage in financially reckless behavior (think: chronic borrowing). They also say the price of gold rises as the value of fiat currency falls.

A video showing how drug dealing really works

What motivates people to sell drugs? The “News on Drugs” series asks how people get drawn into the drug trade, unpacking the different goals and aims involved in dealing drugs. While there is a lot of focus on cartels, traffickers, and gangs...

Whitney Wolfe Herd's return as CEO boosted Bumble's declining stock price

While the uptick didn't last, when Bumble announced Founder Wolfe Herd's return in 2025, shares rose in premarket trading and later that day. Investors likely hoped that her strategy could restabilize the business.

Watch how viruses like Ebola can spill over from animals to humans—and vice-versa.

US consumers collectively owe more than $1T to credit card companies—almost as much as they owe in auto loans.

Hedge funds, the private investment firms that trade a wide swath of financial assets, make money by imposing steep fees on investors and from the fund's investment performance.

Clever Hans was a 1900s horse that was believed to be able to solve math equations, tell time, and read and comprehend German, until a psychology student discovered how he got his answers.

Chaos theory—informally known as the butterfly effect—is the reason why weather forecasts are presented with probabilities rather than certainties.

Warren Buffett's former professor Benjamin Graham is known as the 'father of value investing,' a strategy in which investors seek to buy stocks trading below their intrinsic worth.

The idea for the Federal Reserve was conceived in secret in 1910—with bankers donning duck hunt gear for disguise while traveling to a remote country club on Georgia's Jekyll Island

Fireworks make a loud booming sound after exploding due to air expanding faster than the speed of sound.

How Amazon operates a 'flywheel' business model, a self-reinforcing cycle that drives continuous growth

Memecoins are a type of cryptocurrency—a form of digital currency with a wide variety of uses—created around popular 'memes,' or viral internet jokes.

Watch this video that uses Lego bricks to explain how venture capital works.

The Nasdaq's 'Magnificent 7' companies are responsible for roughly 40% of the Nasdaq 100 index's gains, while the remaining 93 companies account for the other 60%.

See how Budweiser's famous Clydesdales spend their days at Warm Springs Ranch, where roughly 70 to 80 of the beer brand's giant horses can be found at any given time.

Fear or disgust related to clusters of holes and cracks, called trypophobia, may stem from evolutionary processes to help us avoid pathogens.

Double world record holder Hunter Ewen helped conquer his fear of balloons, called globophobia, by training to win Guinness World Record titles for balloon inflation.

Read a deep dive on the 'all-purpose healing' peptide BPC-157.

SpongeBob exemplifies Aristotle's philosophy for living well because he understands that happiness doesn't come from external factors like money, recognition, or power.

Fast-casual restaurant Chili's is experiencing a resurgence, with its parent company recently reporting a nearly 32% increase in sales, thanks to passionate Gen Z fans on TikTok.

A vending machine run with Anthropic's AI went out of business after it was convinced to give away items for free and sell a video game console.

Gerrymandering works through two techniques: cracking opposing voters across districts to dilute their power, and packing them into a few to waste their votes in lopsided majorities.

When a Paris department store hesitated to sell Estée Lauder's perfume, she 'accidentally' broke a bottle, causing the smell to spread throughout the store and shoppers to start asking to buy the scent.

Alzheimer's can lead to brain shrinkage, with an average of around 2% of volume reduction per year

Watch how deep-sea mining equipment collects and processes polymetallic nodules—metal-rich, potato-shaped rocks—from the ocean floor and creates environmentally damaging plumes of sediments.

Some renewable energy sources may weaken the resiliency of electric grids by removing outage buffers provided by coal- and natural gas-fired plants, which provide the system with more time to find a new power source if a plant goes down.

Most of the observable universe's volume consists of voids and supervoids—enormous regions of space with little to no galaxies, stars, or light.