Irrational Exuberance | Robert J. Shiller | Invested more than ten dollars?

Irrational Exuberance | Robert J. Shiller | This phrase will live in infamy

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Irrational Exuberance

	Irrational Exuberance Robert J. Shiller Doubleday Business, 2006 - 336 pages average customer review:based on 88 reviews view larger image
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highly recommended

In this timely and prescient update of his celebrated 2000 bestseller, Robert Shiller returns to the topic that gained him international fame: market volatility. Having predicted the stock market collapse that began just one month after the first edition was published, he now expands the book to cover other markets that have become volatile, particularly the recently red-hot housing market. He includes a full chapter on domestic and international housing prices in historical perspective.

Shiller amasses impressive evidence to support his argument that the recent housing market boom bears many similarities to the stock market bubble of the late 1990s, and may eventually be followed by declining home prices for years to come. After stocks plummeted when the bubble burst in 2000, investors moved their money into housing. This precipitated the inflated real estate prices not only in America but around the world, Shiller maintains. Hence, irrational exuberance did not disappear?it merely reappeared in other settings.

Building on the original edition, Shiller draws out the psychological origins of volatility in financial markets, this time folding real estate into his analysis. He broadens the evidence that investing in capital markets of all kinds in the modern free-market economy is inherently unstable?subject to the profoundly human influences captured in Alan Greenspan?s now-famous phrase, ?irrational exuberance.? As was true of its predecessor, the second edition of Irrational Exuberance is destined to be widely read, discussed, and debated.

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Invested more than ten dollars?

If you have Invested more than ten dollars in the share market or real estate than you should read this book.

This phrase will live in infamy

Great book based on the phrase spoken by Greenspan to try and slow down the economy.

bring a lunch...

This book has good info in it but man, does it get long. I read lots of analytical info with interest, but this book was very very slow for me, especially in the middle and later chapters.

The good news is that the first couple of chapters make it worthwhile. It does present some very important and valid concepts. The easily-bored reader could read the first few chapters and the last chapter, learn a lot of good info, and not miss much in the long middle chapters.

JD

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Bubbles and crises

Last year in my country you can see some commercials in the TV inviting to invest in Mutual Funds, and I believe lots of people turned to that. The problem is that the very next year, beginning in January, the housing bubble burst and we know the rest of the story. Although this book was written before that, the book remain valid at explaining the particular behavior of the markets in these moments of furor, the "irrational exuberance", and the panic that follows it. In my opinion the book is a good investigation of the markets, you can see the author analyzing all the factors involved, including sociological and psicological (this make the book a little slow). Is good to invest in the financial system, but in awareness of its possible behavior.

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