Memoirs Of Extraordinary Popular Delusions and the Madness of Crowds

This is the oldest book on my list, a nineteenth-century compilation of lunacy of all sorts, with a focus on financial lunacy. Mackay aptly compares widespread mass delusions (think Nostradamus, or alchemy) to financial bubbles, including the frenzies surrounding the South Sea Company in England and tulip bulbs in Holland. Some scholars question the historical accuracy of Mackay’s stories, particularly about valuable tulip bulbs being accidentally eaten, but he has the money quote of all time regarding financial scandals: “Men, it has been well said, think in herds. It will be seen that they go mad in herds, while they… show more.