Received: by alpheratz.cpm.aca.mmu.ac.uk id DAA27917 (8.6.9/5.3[ref pg@gmsl.co.uk] for cpm.aca.mmu.ac.uk from fmb-majordomo@mmu.ac.uk); Mon, 25 Feb 2002 03:23:39 GMT X-Originating-IP: [209.240.222.132] From: "Scott Chase" <ecphoric@hotmail.com> To: memetics@mmu.ac.uk Subject: Re: Two financial thought contagion papers now online Date: Sun, 24 Feb 2002 22:18:05 -0500 Content-Type: text/plain; format=flowed Message-ID: <F224BsZXbLvwa2SydHs00006873@hotmail.com> X-OriginalArrivalTime: 25 Feb 2002 03:18:05.0555 (UTC) FILETIME=[0A748430:01C1BDAB] Sender: fmb-majordomo@mmu.ac.uk Precedence: bulk Reply-To: memetics@mmu.ac.uk
>From: <AaronLynch@aol.com>
>Reply-To: memetics@mmu.ac.uk
>To: memetics@mmu.ac.uk
>Subject: Re: Two financial thought contagion papers now online
>Date: Sun, 24 Feb 2002 21:18:44 EST
>
>In a message dated 2/22/2002 6:33:55 PM Central Standard Time, Grant
>Callaghan <grantc4@hotmail.com> writes:
>
> > I remember that even the authoritarian advice of Alan Greenspan about
> > "irrational exuberance" was laughed at not long before the bubble
>burst.
> > Someone even wrote a book making fun of his catch phrase. A few months
> > later, it wasnt' funny anymore. But logic says the stock market only
>does
> > two things: it goes up and it goes down -- sequentially. It's a
> > self-correcting mechanism that always over-corrects before it
>stabilizes.
> > The past history of the market demonstrates this trend over and over
>during
> > the past hundred years. But irrational exuberance is stronger than
>data
>and
> >
> > that hope that beats eternal within the human breast takes on religious
> > overtones of belief in the ponzi scheme of an over-subscribed market.
>The
> > most common term for it is "The Greater Fool" theory. This implies
>that
>one
> >
> > can always find a greater fool to sell inflated stocks to. Sounds a
>lot
> > alike the mantra of the lottery ticket buyer: "You can't win if you
>don't
> > buy a ticket."
> >
> > Grant
>
>Hi Grant.
>
>Actually, the book Irrational Exuberance is a serious and very well
>done book, not meant as a joke. I think that some media people may
>have joked about it, though. It has a chapter on contagions, too.
>Also, Alan Greenspan started referring to "the contagion effect"
>in reference to the Asian economic crisis in 1997.
>
>
Is that the same Alan Greenspan who wrote the essays "Antitrust", "Gold and
Economic Freedom", and "The Assault on Integrity" which were published in
Ayn Rand's _Capitalism: the Unknown Ideal_? What's he up to these days ;-)
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