Part 10/13:
Unsophisticated Participants: When inexperienced investors heavily partake in markets—such as crypto or AI investments—they often do so chasing speculation rather than fundamentals.
Violations of Natural Laws: Claims of breaking economic laws (e.g., Gresham's Law) or creating 'new money' defy natural principles, indicating bubble-like conditions.
Absence of Profits: Companies, especially tech giants, burning billions without generating profits suggest speculative bubbles, not sustainable growth.
Johnson cautions that during bubbles, prices of assets like stocks, real estate, or commodities can spiral far beyond intrinsic value before crashing—usually leaving investors with significant losses.