New Delhi, July 15 -- Let me start with one of my favourite quotes from a book that explains financial bubbles elegantly, John Kenneth Galbraith's A Short History of Financial Euphoria: "There can be few fields of human endeavour in which history counts for so little as in the world of finance."

The beauty of each such episode is that whether it is the non-fungible token (NFT) frenzy of 2021, the mortgage madness prior to the global financial crisis of 2008 or the Indian small and medium initial public offerings (IPO) boom of 2024, the template remains the same.

During a classic bubble inflation in the euphoric phase, every member of the mob believes they are smart and all the money being made by them is well-deserved. Those sceptical a...