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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Review: Irrational ExuberanceUser Review - Andrew - Goodreads
When it comes to the stock market, bubbles, or understanding American Macroeconomic history, it just doesn't get better this this book. At the very beginning Shiller wows you with having created two ... Read full review
Review: Irrational ExuberanceUser Review - Kirsten - Goodreads
Robert Shiller is my hero! He just won the Nobel Prize for economics. Read full review
One The Stock Market in Historical Perspective
Two The Real Estate Market in Historical Perspective
The Capitalist Explosion
Five The News Media
Six New Era Economic Thinking
Seven New Eras and Bubbles around the World
Light Psychological Anchors for the Market