Irrational Exuberance and how it may kill you.

Proof? Here are some reminders from three earlier historical cycles and the irrational exuberance that consumes us:

Irrational Exuberance leading up to the 2008 subprime meltdown
BusinessWeek, Kiplinger’s and USA Today all reported on false predictions made before the subprime credit meltdown spread rapidly across America and the world:

•Treasury Secretary Hank Paulson: Tells Fortune magazine, “this is far and away the strongest global economy I’ve seen in my business lifetime.”

•Fed Chairman Ben Bernanke: “I don’t anticipate any serious failures among large internationally active banks.”

•Congressman Barney Frank: “Freddie Mac and Fannie Mae are fundamentally sound.”

•Ken Fisher: “This year will end in the plus column ... so keep buying.”

•Barron’s: “Home prices are about to bottom.”

•“Mad Money’s” Jim Cramer: “Bye-bye bear market, say hello to the bull.”

•Goldman Sachs’ Abby Joseph Cohen: “The fear priced into stocks is likely to abate as recession fears fade.”

•Kiplinger’s: “Stock investors should beat the rush to the banks.”

•Alan Greenspan: After 18 years, he finally admitted “I really didn’t get it until very late.”

And if the general public still choose to be ignorant in their approach towards investing knowledge, its about time your money will be squandered.

You've been warned.