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Irrational Exuberance

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Irrational Exuberance
A term used by Alan Greenspan in 1996 to describe the dot-com bubble and, more broadly, the fact that the markets were overvalued. He was criticized at the time for talking down the market and stocks fell worldwide after he said it. However, his opinion was vindicated when the dot-com bubble burst, and irrational exuberance is still used as a catch phrase for overvalued markets.


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Call it the irrational exuberance of Democrats counting a few extra chickens, or more than idle speculation on just how far the coming wave could reach.
Yale economist Robert Shiller, author of the recent The Subprime Solution: How Today's Global Financial Crisis Happened and What to Do About It and the now immortal Irrational Exuberance, praises Suze Orman in a Wall Street Journal op-ed this morning.
In the same way that I think Greenspan, the former Fed chairman, talked about irrational exuberance, we now have irrational despair," Obama said, when asked why a 700 billion dollar US Wall Street bailout signed last week had failed to stem huge stock market losses.
 
 
 
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