Masterful use of the Hero's Journey framing to explain systemic financial risk. The Chongqing observation nails what spreadsheets can't capture the psychological shift when people realize their stored value isn't liquid anymore. I've noticed how every asset bubble follows this pattern where the thing itself (concrete, tulips, crypto) stops mattering and only the belief in perpetual appreciation drives behavior, which is why the descent always suprises everyone even though its built into the structure from day one.
Yes belief in perpetual appreciation causes many issues, but the challenge in not having it, is you end up with Japan where no one does anything with their money.
Finding the right balance between expectations of future growth, while avoiding creating a buble is key.
Masterful use of the Hero's Journey framing to explain systemic financial risk. The Chongqing observation nails what spreadsheets can't capture the psychological shift when people realize their stored value isn't liquid anymore. I've noticed how every asset bubble follows this pattern where the thing itself (concrete, tulips, crypto) stops mattering and only the belief in perpetual appreciation drives behavior, which is why the descent always suprises everyone even though its built into the structure from day one.
Yes belief in perpetual appreciation causes many issues, but the challenge in not having it, is you end up with Japan where no one does anything with their money.
Finding the right balance between expectations of future growth, while avoiding creating a buble is key.