[ExI] Psychology of markets explanations

[painlord2k at libero.it]

Il 01/06/2009 22.20, BillK ha scritto:

> Look around you, George A. Akerlof and Robert J. Shiller say. The
> second coming of the Great Depression is, like the original, a direct
> result of animal spirits. If only we had factored those turbulent
> emotions into economic theory, we might not be repeating the earlier
> tragedy.

So, if you are right, what is the solution of the problem about the 
"animal spirit"?
Chain them? By who? Another human, that could be subjected to the same 
"animal spirit" problem?

What is "animal spirit"? Something like "malaria" ("bad air" in 
Italian). Because we know that it is caused by the air, not the germ and 
the mosquito. Or maybe the influence of Saturn? Nope, that is the Black 
Death.

> There was nothing rational, well ­informed or unemotional about the
> behavior that has all but collapsed the economy. That leaves most of
> America’s economists without a believable framework for explaining how
> we got into this mess. Akerlof and Shiller are the first to try to
> rework economic theory for our times. The effort itself makes their
> book a milestone.

They are dusting off the rotten body of Keynes and call it "rework 
economy theory for our times"?
What is next time? Communism? Feudalism? Tribalism? Philosopher-Kings?
The latter we have in Venice, now. Don't work as claimed.

Mirco

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