Econo-Girl is distracted by her second edition Irrational Exuberance book. The author was the one that called the stock market bubble in 2000. He says we've just transferred our fever to the real estate markets.
His book is shockingly realistic for an egghead. He actually admits the emotions play a part in bidding up stock and property prices. And then he describes how human reaction just accelerates the bidding.
The big thing is, since the conservative revolution in the 1980's, people have identified themselves increasingly with their role in the marketplace, as opposed to as a father or friend. So if you fail at investments, somehow you became a 'loser.' And if it seems that everyone is putting money into tech stocks but you, you don't want to be a loser and keep out of it. You want to be a winner and buy in. So at those sloshy cocktail parties you can join the braggarts and morph into a winner yourself.
It's all so sad.
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