The Myth of the Rational Investor

Or, Why the Poor Capitalists Got Suckered (again)

Commenter on this website "Longman Oz" has a website of his own. Ostensibly dedicated to material of a more "cultural" nature, he has been unable to resist the lure of commenting on current economic travails, and has written a very readable account of how the banking crisis took the form it did this time (there will probably always be banking crises, and they will take different forms every time).

Read my own comment on the website too, and I hope that Bryan Caplan is reading this.

In "Liars Poker", a factual account of life inside a Wall Street investment bank, and even in the fictional "Bonfire of the Vanities", both widely read roughly two decades ago, the gullibility of those managing investment funds was depicted. Anecdotally, my recollection is that everyone accepted that the picture was accurate. The phenomena described by Longman Oz were just a further development of the madness already well under way.

Why did investors not shout "stop" ?

Comments

[Promocja]

Investors never stop , i think that most of them put money for blind ...