If you were around the dot com bubble years, you remember that there were a few people who were “non-believers”. Those few who didn’t believe that “this time its different”. One of them was Robert Shiller, an economist who got his first 15 minutes of fame for renting to Allan Greenspan, the now infamous phrase, “irrational exuberance”.
Most economists would give their left (insert apendage here) to have this much insight. But Shiller goes one step beyond, he not only nails the predominant theme of the day, his timing is impeccable.
His first mainstream book, Irrational Exuberance, was published in early 2000, just as the Nasdaq reached its zenith and started to feel top heavy.
I remember watching many of his interviews back then. It was as if the market itself seemed to go out of its way to make the case on his behalf. He lucidly explained to millions of new taxi drivers turned traders and “get rick quick” investors why their dreams were melting faster than an ice sculpture in the Gobi desert.
Shiller is back with another book, The Subprime Solution: How Today’s Global Financial Crisis Happened, and What to Do about It
I haven’t read it yet (but hope to as soon as possible) so I can’t give you my review but from everything that I’ve read online about it from other reviewers and from the interviews that Shiller has been doing, I think he has done the amazing feat of producing a hit sequel to his original.
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