"Most of the time common stocks are subject to irrational and excessive price fluctuations in both directions as the consequence of the ingrained tendency of most people to speculate or gamble... to give way to hope, fear and greed."
"THERE is widespread agreement among economists that abuse of credit constitutes one of the chief unwholesome elements in business booms and is mainly responsible for the ensuing crash and depression."
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Source: Storage and Stability. Book by Benjamin Graham. Part III, Chapter XIII, The Reservoir Plan and Credit Control, p. 153, 1937.
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