What is Irrational exuberance?

Irrational exuberance is when people get way too excited about something, even if it doesn’t make much sense.

Imagine you and your friends are playing with building blocks. You all decide to build the tallest tower ever. At first, everyone works together, stacking block after block. But then, someone says, “This will be the biggest tower in the whole world!” So everyone starts jumping up and down, shouting, and adding way more blocks than needed, even though the tower is already really tall.

That’s irrational exuberance, people get super excited about something (like a big tower or maybe a new toy), and they keep going way beyond what makes sense. It’s like when you’re so happy about getting one candy that you eat all the candy in the jar, even though you're already full.

Sometimes, people get carried away because others are excited too. If your friends are jumping around, you might feel like you have to join in, even if you don’t need to. It's kind of like a big, happy party where everyone forgets to check if the tower is actually going to stay up!