The Delusions Of Crowds: Why People Go Mad in Groups
by William Bernstein. It's an update on Mackay's classic.
Bernstein spends a lot of time sneering at religious cults (Islam included) but hits a few good points about reasoning and social dynamics aka lack of reasoning.
"The four most dangerous words in the english language are 'It's Different This Time' ." And some other good ones.
I'm thinking we're about due for another big bust. The Dow is up 48% in the last year. When it busts, any politician who has jaywalked will get blamed.