Great observation from economist Robert Shiller:

Economists who adhere to rational-expectations models of the world will never admit it, but a lot of what happens in markets is driven by pure stupidity—or, rather, inattention, misinformation about fundamentals, and an exaggerated focus on currently circulating stories.

See Debt and Delusion – Robert J. Shiller – Project Syndicate.

Category:
Economy, Financial Crisis