Triple Waterfalls
Excerpts from Chapter 2 - "Triple Waterfalls" and
Chapter 3 - "How Triple Waterfalls Reshape the Landscape".

Triple Waterfall is
a familiar pattern:

What could be called the seven capital C crashes of the past 74 collectively had enormous importance in shaping our capital markets economy.

The basic ingredients of these seven events are so similar that understood the earlier manias came unscathed through the later who understand all seven will be most likely to prosper in coming as Mark Twain observed, "History doesn't repeat itself. But it does rhyme."

There are six stages
to a Triple Waterfall:

Up

  1. Optimism: 2 years
  2. Faith: 2 years
  3. Fanaticism: 1 to 2 years
Down
  1. Sudden Shock: First Cascade, 6 to 12 months
  2. Last Chance: Second Cascade, 2 to 10 months
  3. Long-Term Collapse: Third Cascade, 12 to 20 years

Read more:
Shared Mistake
The buildup and plunge that make Triple Waterfalls such panoramic events are driven by the spread of Shared Mistake, an overarching system that gradually coalesces among intellectual, business, Shared Mistake is one of those blessedly infrequent mass illusions about the market's current and longer-range bullish prospects Wall Street, industry, the media, and the intellectual elites.


Waterfall Trivia

The Courthouse at Robson Square in Vancouver, Canada is an architectural masterpiece, designed by internationally renowned Canadian Arthur Erikson.

His rendition of a Triple Waterfall—
no fearsome torrent—cascades
over office windows to disappear
beneath paving stones at the
Law Courts entrance.