The SQUEEZE: The economic crisis of 2008 has its roots in the failing stock and housing markets. In 1996, Alan Greenspan predicted a declining stock market and used the term “irrational exuberance” to explain the activities that would later characterize the period; activities included the collapse of the tech stock bubble and other factors that affected price growth. It is within this context that Robert J. Shiller’s second edition of “Irrational Exuberance” provides a market volatility analysis and explores the influence of “folded real estate.” Shiller believes that the inflation of housing prices contributed to the volatility, thereby creating a bubble. This bubble subsequently increased the rate of bankruptcies and influenced a worldwide recession. Shiller’s book represents an analytical work that is so futuristic in its intent. It is a must-read for both the layperson and the economics professional.Show More

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Notable Endorsement: “By history's yardstick, Shiller believes this market is grossly overvalued, and the factors that have conspired to create and amplify this event--the baby-boom effect, the public infatuation with the Internet, and media interest--will most certainly abate. He fears that too many individuals and institutions have come to view stocks as their only investment vehicle, and that investors should consider looking beyond stocks as a way to diversify and hedge against the inevitable downturn. This is a serious and well-researched book that should read like a Stephen King novel to anyone who has staked his or her future on the market's continued success.” --Harry C. Edwards

Common Q’s Answered by this Book:

• What is “behavioral economics”?
• What is “irrational exuberance”?
• What characterizes the recent economic crisis of 2008?
• What is market volatility?
• What predicted the collapse of the tech stock bubble?

About the Author: Robert J. Shiller functions in multiple roles. Shiller is the Stanley B. Resor Professor of Economics at Yale University; he serves both in the Department of Economics and in the Cowles Foundation for Research in Economics at the university. Shiller is also a fellow of the International Center and Finance located at Yale School of Management. Shiller writes extensively on such topics related to financial markets, financial innovation, behavioral economics, statistical methods, public attitudes, and moral judgments regarding markets. Shiller’s book titled “Market Volatility” (MIT Press, 1989) is on the subject of price fluctuations in speculative markets for which he bases his research on mathematical and behavioral analysis. In 1993, Shiller published “Macro Markets: Creating Institutions for Managing Society’s Largest Economic Risks” (Oxford University Press); in the book Shiller proposes a new form of risk management contracts. Shiller graduated with a bachelor’s degree in economics from the University of Michigan; and also with a doctorate in the same major from the Massachusetts Institute of Technology (1972). He currently serves as Vice President of the American Economic Association. For more information about his current projects, visit: http://www.econ.yale.edu/~shiller/. For information about topics related to Shiller, visit: http://topics.bloomberg.com/robert-shiller/. For more information about the book, visit: http://www.irrationalexuberance.com/about.htm

Book Vitals:

Publisher: Crown Business (May 2006)