Warren Buffett brilliantly explains how bubbles are formed

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• Warren Buffett gave a crystal-clear explanation of how financial bubbles form in a 2010 interview with the Financial Crisis Inquiry Commission (FCIC).
• "You can get in a whole lot more trouble in investing with a sound premise than with a false premise," he said.
• With housing, for example, the trouble starts once people begin to buy because they really believe prices would go up.

Warren Buffett, Berkshire Hathaway's CEO, has said cryptocurrencies "definitely will come to a bad ending." 

He was speaking in January on what's probably the highest profile financial-bubble suspect right now. See the rest of the story at Business Insider

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