Tuesday, April 13, 2010

Financial Crisis warnings - Shouting Fire

From the Economist :

In a normal panic, perception overwhelms reality. Shout “Fire!” in a crowded theatre and people do not wait to see the evidence before they rush for the exits. In the crisis of 2007-08, observes Michael Lewis in “The Big Short”, the reverse occurred. People remained in their seats while the building burned down around them.

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