Financial Mania

“I knew it was time to sell my stock when the taxi driver was giving me investment advice.” Said one of the robber barons during the great depression. (A google search failed to give me a more specific citation.)

I came across this article today while reading about Rutgers Football:

“I’m broke,” he shrugged, while munching on a tuna sub earlier this week in the Hale Center. “I realized this could be a way I could make some money.”

“I roomed with him and he was watching all that stuff,” Silvestro said. “I’m in an accounting class, so I guess I should be paying attention. All the time he tells me what he’s going to do (investment-wise). I listen and it sounds good what he’s saying. I think he knows what he’s doing.”

When he’s not digesting Rutgers’ defensive playbook, Tverdov is searching for investment tips on the internet.

“I read some articles on CNN Money, MSN Money, and then I’ll buy a book here and there when I have time,” Tverdov said. “It’s something I’d like to do when I graduate.”

Problem is, Tverdov majored in criminal justice.

“Coach Schiano told me I could guard money, that’s about it,” Tverdov quipped.

I love the football team and am not trying to make fun of them. I’m glad they have other interests and are eager learners. This is just more of an example of ¬†when anyone and everyone starts to think they can get rich off the market, that’s when a you have the makings of a bubble.

If you’re interested in why this is happening (and why it’ll happen again) you must read The Black Swan by Nassim Taleb.