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Irrational Exuberance, Revised and Expanded Third Edition: A Book Review

Al Foster

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Irrational Exuberance, Revised and Expanded Third Edition, is a book by Robert J. Shiller, a Nobel Prize-winning economist. The book examines the history of financial bubbles and argues that they are caused by a combination of psychological and economic factors. Shiller identifies several warning signs of a financial bubble, including rising asset prices, increasing leverage, and a surge in speculative activity. He argues that investors should be aware of these warning signs and avoid investing in assets that are at risk of a bubble.

Irrational Exuberance: Revised and Expanded Third Edition

by Robert J. Shiller

4.4 out of 5

Language	:	English
File size	:	3072 KB
Text-to-Speech	:	Enabled
Screen Reader	:	Supported
Enhanced typesetting	:	Enabled
Word Wise	:	Enabled
Print length	:	378 pages

The book was first published in 2000, just before the dot-com bubble burst. Shiller's warnings about the dangers of investing in overvalued assets were largely ignored at the time, but they have been vindicated in the years since. The book has been praised for its insights into the psychology of financial markets and its ability to predict financial crises.

The third edition of Irrational Exuberance has been updated to include new material on the financial crisis of 2008 and the subsequent recovery. Shiller also discusses the rise of Bitcoin and other cryptocurrencies, and he warns that these assets may be at risk of a bubble.

Irrational Exuberance is an essential read for anyone who wants to understand the history of financial bubbles and how to avoid them. Shiller's insights are invaluable for investors, policymakers, and anyone else who is interested in the financial markets.

Key Findings

Financial bubbles are caused by a combination of psychological and economic factors.
There are several warning signs of a financial bubble, including rising asset prices, increasing leverage, and a surge in speculative activity.
Investors should be aware of the warning signs of a financial bubble and avoid investing in assets that are at risk of a bubble.
The financial crisis of 2008 was caused by a combination of factors, including a housing bubble, a credit bubble, and a lack of regulation.
The rise of Bitcoin and other cryptocurrencies may be a sign of a new financial bubble.

Irrational Exuberance is a classic work on the history of financial bubbles. Shiller's insights are invaluable for investors, policymakers, and anyone else who is interested in the financial markets. The third edition of the book has been updated to include new material on the financial crisis of 2008 and the subsequent recovery. Shiller also discusses the rise of Bitcoin and other cryptocurrencies, and he warns that these assets may be at risk of a bubble.

If you are interested in learning more about financial bubbles, I highly recommend reading Irrational Exuberance. Shiller's book is a valuable resource for anyone who wants to understand the history of financial markets and how to avoid the mistakes of the past.

Irrational Exuberance, Revised And Expanded Third Edition, By Robert J. Shiller Irrational Exuberance: Revised And Expanded Third Edition