More of my 2. Minute economics...
My problem with Shiller is when he talks about how "Animal Spirits" are what Cause the Economics. Like many things ... Cause and Effect are .... Nebulus.
So.. Using that Thesis, one would think the Enthusiasm in the market would Lead to .... More Enthusiasm... As opposed to the natural Ebb and Flow of Sentiment.
Price Precedes Sentiment.... One may then conclude that it is the price that drives sentiment. Not sentiment that drives Price.
It's just my simple objection that "Talking about bad things" does not make them happen.. this is superstitious nonsense. It's the "Don't use the R.... Word" economic thesis..... If economics was as easy as not using the "R Word" ....
That "Some People" have this thesis... Just shows that the Pseudo-Science of Economics Is just that.
Though... Things aren't all that black and white... cause there certainly is an element of some ability to "Scare" the markets.... but is it that ... or is the "Scare" just an attempt to find a Fair Value.....
Just some Musings.....
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