ABSTRACT
A 'bubble' or 'speculative bubble' occurs when the market price of a share begins to depart from its intrinsic value. Large price rises followed by collapse, and the general irrationality of financial and other economic markets, have long been recognized. Keynes suggested a completely different, but nevertheless rational, strategy for choosing those shares whose price was most likely to rise the most. The Minsky's Financial Instability Hypothesis (FIH) attempts to explain the irrationality of financial markets during periods of extreme boom and bust which may lead to a financial crisis. The creation of the railways in the UK represented not only a huge technological revolution but also a change in the way people and goods travelled. Poseidon's share price started rising around 25 September 1969 when results from drilling at Windarra became known to some insiders. Many publicly listed companies that later collapsed attempted to manipulate their financial results in other areas.
