When North American stock markets raced upward from 1995 to 1999, their rise was ridiculed — by people like Yale’s Robert Shiller and the U.S. Federal Reserve’s Alan Greenspan — as a mere “irrational exuberance.” No facts, they said, explained the gains. The rise, they claimed, was just another case of “market failure” which needed … Continue reading Rational Pessimism: The Choice Between ‘Irrational Exuberance’ and ‘Irrational Pessimism’ is a False Dichotomy