Fads, Frenzies, and Finance
More and more people claim that markets are characterized by irrationality, bubbles, fads, and frenzies, and that economic actors are driven by behavioral biases. If such beliefs are generally accepted, we will end up enacting paternalistic policies aimed at controlling behavior or bailing out failed agents and institutions, which could be self-defeating and even dangerous.
https://prosyn.org/CKfNrOz
Barcelona – The financial crisis, credit crunch, and ensuing economic downturn have severely damaged the credibility of financial markets, institutions, and traders. More and more people are claiming that markets are characterized by irrationality, bubbles, fads, and frenzies, and that economic actors are driven by behavioral biases.