"Fox: The book is really more about our collective irrationality, because I think there were arguments for years that obviously lots of individuals behave irrationally, but there was this theory that you bring 'em all together and you throw in a bunch of smart hedge fund managers, and markets come up with pretty, financial markets come up with pretty rational results. And my book is saying no, actually they don't.
Radke: Yes, yes, so then I mentioned Congress is considering financial regulation right now. If markets are irrational, where does that mean you stand on this financial regulation debate?Fox: Well yeah, on the one level that's clearly that's an argument for regulation, that markets overshoot, overdo it, have booms and busts. But if markets are irrational, government regulators presumably are, too."
Tuesday, April 27, 2010
Irrational people make irrational market | Marketplace From American Public Media