Comment by watwut

That is what I took from economy history and from what economists wrote on the topic. That past bubbles we recognized as bubbles were known to contemporaries. They wrote articles about the situation being a bubble, they knew.

> Take NFTs for again the latest contemporary example - Most traders literally can't afford the heights of bubbles, or anywhere near them, which largely limits the breadth of massive losses.

I dont know whether you could have use your NFT "investment" as a collateral for mortgage or it shown up in company sheet etc. Honestly, I don't know who were traders of NFT in the first place. I think that all in all, NFT were kind of a fringe thing for super rich basically gamblers.

What you do actually get with crypto or stocks or in retail futures trading are people who have put all their money into that stuff. Or even took debt to put their money in. So, they are loosing all of that. Or, they invested into funds that buy that stuff - you invest whatever you have, those money join other peoples money and suddenly fund can buy it. And the last point is important, because some of those funds are things like pension funds who invest into certain stuff automatically.