Speculative markets have always been vulnerable to illusion. But seeing the folly in markets provides no clear advantage in forecasting outcomes, because changes in the force of the illusion are difficult to predict.
Interpretation
Speculative markets are often misleading, and recognizing this doesn't necessarily improve prediction accuracy.
Robert J. Shiller highlights the complexity of speculative markets where illusions can cloud judgment. While it's essential to recognize the follies within these markets, understanding them doesn't simplify forecasting outcomes, as the dynamics of these illusions are unpredictable and can change rapidly.
In practice
During a financial seminar discussing market behavior.
Those on the downside of rising economic inequality generally do not want government policies that look like handouts. They typically do not want the government to make the tax system more progressive, to impose punishing taxes on the rich, in order to give the money to them. Redistribution feels demeaning. It feels like being labeled a failure.
That's the world we live in: when it comes to economics, people have emotions; it's not like chemistry or physics.
Money management has been a profession involving a lot of fakery - people saying they can beat the market, and they really can't.
We should not be focusing on quick solutions. The really important concern for policymakers everywhere is to prevent disasters - that is, the outlier events that matter the most.
If we wait until income inequality is much more severe, we will have a whole class of new superrich who will probably feel entitled to their wealth and will have the means to defend their interest. That's already gone far enough. We shouldn't let it become more extreme.
I think that a lot of people in all walks of life have the impression, of course, that, 'I specialize in something. I can't - I don't have the time to read other things. I'll just go to pure entertainment when I'm relaxing, and then I'll come back to my pure specialty.' That produces - that attitude produces idiot savants, unfortunately.
The penalty may be removed, the crime is eternal.
But we should be mindful as we argue about our differences that so much more unites than divides us. We should also note that our differences, when compared with those in many, if not most, other countries, are smaller than we sometimes imagine them to be.
Retreat is a response to the call of the heart-that call which beckons us toward reality, to the truth of our being, to that which is truly sane, really real and liberating ... When a group of people come together as a response to that kind of inward call, it creates a very powerful environment, where truth is held in the highest esteem and the reality of our being responds to that deepest intention.
. . . money . . . is really the difference between men and animals, most of the things men feel, animals feel, and vice versa, but animals do not know about money.
Corruption is nature's way of restoring our faith in democracy.
Man is able to decide for or against reason, he is able to create beyond reason or to destroy below reason
Subscribe for the occasional hand-picked quote. No noise.