💸 What Always Happens Before a Financial Crisis

Every financial crisis might have a different name — Tulip Mania, Dot-Com Crash, Housing Bubble — but underneath, it’s always the same story playing out again.

It starts with excitement.
A new trend captures everyone’s attention — tulips in the 1600s, internet stocks in 2000, housing in 2008, or even AI and crypto today. Prices rise fast, and people start thinking, “This time is different.”

Then comes the fuel — banks and investors pour in, new financial products are created, and everyone from Wall Street to Uber drivers starts buying in. The market becomes driven by emotion, not logic.

Eventually, the price climbs so high that no new buyers are left. Demand fades, panic spreads, and the bubble bursts. Suddenly, everyone’s asking: “How did nobody see this coming?”

But here’s the truth — some people do see it coming.
In every crash:

Most people lose money.

Some stay the same.

A few get rich — by buying valuable assets when everyone else is selling.

This is what the video calls the POOP cycle:
Panic → Overselling → Opportunity → Profit.

When fear takes over, prices drop below real value — and that’s when smart investors quietly step in.

📈 Why This Matters Now (2025)
Today’s stock market looks expensive — average P/E ratios are around 27x, and margin debt (borrowed money for investing) is spiking again.
History doesn’t repeat, but it rhymes.

💡 The Lesson:
Crashes aren’t the end — they’re resets.
They remind us that markets run on emotion, and that patience and preparation matter more than prediction.

#Finance #Investing #Economy #MarketTrends #FinancialCrisis