4 ms·
Capital flees because capital is a perfectly rational meta-being. If capital is fleeing, it is for good and rational reasons. "Irrational exuberance" - sorry, t
by intrasight 11y ago
Capital flees because capital is a perfectly rational meta-being. If capital is fleeing, it is for good and rational reasons. "Irrational exuberance" - sorry, there's no such thing. Capital works with the information it has at the time it makes decisions. "Risk of a correction" - sorry, but I see no mention of risk when I lookup "correction" in the dictionary. When capital updates its model with new information, there will be losers and winners. Finance is about having a better model and better information.
- emodendroket 11y ago"Irrational exuberance" was coined, or at least popularized, by free market true believer Alan Greenspan in a speech to the American Enterprise Institute.
- intrasight 11y agoYes. And it's sad that he is mostly remembered for a term which is effectively anti-market
- emodendroket 11y agoThat is certainly not what he is "mostly remembered" for, and I suspect the popularity of the term is precisely because that is not the case.