More Extraordinary Popular Delusions and the Madness of Crowds [Paperback]

Joseph Bulgatz (Author)

Book Description

Publication Date: September 21, 2000

This is the sequel to and updating of Charles Mackay's classic work, Extraordinary Popular Delusions and the Madness of Crowds. The Mackay book, now almost 160 years old, is still in print in many additions and was long celebrated as a source of investment wisdom.

Editorial Reviews

About the Author

Joseph Bulgatz is a writer and lawyer living in New York City.

Product Details

• Paperback: 452 pages
• Publisher: IUniverse (September 21, 2000)
• Language: English
• ISBN-10: 0595003907
• ISBN-13: 978-0595003907
• Product Dimensions: 9 x 6.2 x 1.2 inches
• Shipping Weight: 1.8 pounds (View shipping rates and policies)
• Average Customer Review: 5.0 out of 5 stars  See all reviews (1 customer review)
• Amazon Best Sellers Rank: #2,924,461 in Books (See Top 100 in Books)

Customer Reviews

Most Helpful Customer Reviews

2 of 6 people found the following review helpful:

5.0 out of 5 stars Fun, Entertaining and Enlightening, December 6, 2005

By 

Kevin Kingston (ny) - See all my reviews
(VINE VOICE)    (REAL NAME)   

This review is from: More Extraordinary Popular Delusions and the Madness of Crowds (Paperback)

More Extraordinary Popular Delusions

" . . . Another lot was sold successively for $2,500, $7,800, $10,000, $17,500 and finally, $35,000- the last purchaser being the man who sold it for $2,500. A property owner on the street was asked what his property was worth and said, "Well, it was worth about $30,000 at nine o'clock this morning. But at ten o'clock the lot next to mine sold for $40,000, so I suppose it aught to bring about $50,000 as it is now ten minutes past twelve."

- From, More Extraordinary Popular Delusions and the Madness of Crowds, by Joseph Bulgatz talking about the Florida land boom in the mid 1920's


When I read articles about South Florida real estate increasing in value 50% last year in certain cities I can't help but think about the book, Extraordinary Popular Delusions and the Madness of Crowds, by Charles Mackay, and its follow up, More Extraordinary Popular Delusions and the Madness of Crowds, by Joseph Bulgatz. These books talk about bubbles and how in different times in history entire societies become delusional about prices of things from, tulips, stock shares to real estate. It's truly an enlightening book that I highly recommend!

I believe there are many underlying themes at work in the appreciation of the real estate market and as often happens when a certain asset class heats up there are sectors that will become distorted. Thinking about Florida, I cant help pondering the 76 million baby boomers born between 1946 and 1964. This extrapolates into roughly 11,599 boomers hitting 60 a day starting in 2006. Put another way that's 8 a minute.

I know plenty of people in their 20's, 30's and 40's that want to own a place in Florida to be able to get away and warm up during the winters, so as this wave of retirees starts to get their second wind in life and may be winding down a career they may very well head south in droves.

My partner and I own a few hospitality properties in Hollywood Beach Florida and can assure you that it's not just the US boomers that are enjoying South Florida. The Canadians head south at full speed in the winter to avoid the freezing cold, the feet upon feet of snow and freezing wind they get bombarded with. Come summer it's the Europeans that enjoy South Florida as Europe just about closes down for summer vacations. Surprisingly enough they don't mind the heat and humidity, they actually enjoy it.

Recently I drove South on A1A, Ocean Ave. from Hollywood Beach to South Beach Miami and counted the buildings going up on the ocean. This is about a 20 minute drive and I was amazed by the number of condominiums, many of them pre sold before construction, many even sold out. I counted 22 projects. Not even taking into account anything that was not directly on the ocean. We know the reason for the demand; low interest rates, people disgusted with the stock market, the baby boomers heading south and of course the simple fact that people follow momentum. Price moves beget further price moves. When people hear about a friend or colleague that put down $50,000 or $100,000 on a pre construction condo in Florida and as soon as the construction started sold it for a $100,000 profit, its hard not to take a shot and hope the move lasts just a bit more. Even if the price of the unit is $1,000,000 or more, many times you can tie up the unit for a small down payment. Sort of like what the binder boys were doing in the 1920's Florida land boom.

It's similarities like this and comments like, "Its different this time" that make me shake my head and say, "Here we go again".

By Kevin Kingston, author of: A 20,000% Gain in Real Estate


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