Word of the Day: Psycho-Economic

Mr [Robert] Shiller describes a bubble as “a psycho-economic phenomenon. It’s like a mental illness. It is marked by excessive enthusiasm, participation of the news media and feelings of regret among people who weren’t in the bubble.” They are often enlarged by an expansion of credit. But establishing an objective definition is hard.  – The Economist

Dec7_Bubbles

(click here if chart is not observable)

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