Manic behaviour in the financial world

Western economies displayed the same kind of manic behaviour as psychologically disturbed individuals in the run up to the 2008 credit crisis -- and it could happen again

Richard Farmer

Crikey political commentator

Manic behaviour in the financial world. Western economies displayed the same kind of manic behaviour as psychologically disturbed individuals in the run up to the 2008 credit crisis — and it could happen again, according to the winner overnight of the iLab prize for innovative scholarship.

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4 thoughts on “Manic behaviour in the financial world

  1. klewso

    A couple of years ago, Paul Solman (Newshour) did a very good report
    from San Francisco (at an economists convention), on why these well-paid
    professionals failed to see “the pink mammoth with bells and a tu-tu” coming?
    Part of it was so few were happy playing “Ostrich” and didn’t want to see it
    – or speak out for fear of being wrong ……. “safety in herds”? Look at what happened to Jonah.
    Especially while some were making so much money – even if it was out of little more than thin air?
    What that sort of news could do to their bottom line and along the line.
    Some did see it – and said so – who listened?

    [What do you call “a collection of economists”? A “cacophany”? A “rabble”?]

  2. klewso

    There are still economists being deferred too as “experts in economics”,
    who didn’t see it, with no reference to that part of their form guide,
    on a “heavy track”.

    [Like “Doctor how many have you “lost” this week?”
    “Only 3, my average is 4, now lie back and don’t worry, this won’t hurt a bit.”
    Wouldn’t effect your confidence in them either?]

  3. klewso

    [3:23]
    “…….. Part of it was so MANY were happy playing “Ostrich” …..”

  4. zut alors

    Klewso, my offering: a wad of economists.

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