Re: Two financial thought contagion papers now online

From: Scott Chase (ecphoric@hotmail.com)
Date: Mon Feb 25 2002 - 03:18:05 GMT

  • Next message: Grant Callaghan: "Re: Two financial thought contagion papers now online"

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    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
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    >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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