Who Is Robert Shiller's Irrational Exuberance?
Response paper
~ Irrational Exuberance, Robert Shiller / The Subprime Solution, Robert Shiller ~
Introduction Robert J. Shiller, the author of both of the books I read, is an economist and a professor at Yale University, a New York Times bestseller, and a Nobel Prize winner in Economic Science for his “Empirical Analysis of Asset Prices” piece in 2013 (Pendlebury, D. 2012). He also made the Bloomberg 50’s “Most Influential People in Global Finance” list in 2011 (Bloomberg, 2011) and published many well-known books written on financial markets and behavioral economics. Recently, his name is seen in Japanese media as Japanese Prime Minister Abe Shinzo’s adviser.
In the middle of June, Japan increased sales tax for the first time in 17 years. …show more content…
When he published the first edition of this book in 2000, he also predicted the burst of the IT bubble. The title of this book was first used in a speech given by Alan Greenspan, the Federal Reserve Board Chairman at the American Enterprise Institute in the 1990s. Nowadays, it is used to describe the unreasonable behavior of the stock market; this phrase perfectly matches with the phenomenon observed in subprime loans. In this book, Shiller proposed 12 structural factors that contributed to the boost of the real estate bubble, which were also similar factors that caused the IT bubble to grow in the …show more content…
The problem with bailout is that it must be done promptly, correctly, and without any injustice or unfairness. Moreover, allocation of sufficient resources and setting of proper goals of policies are demanded. A bailout that the U.S. government issues through this subprime loan was criticized by people for caring more about saving banks and bankers than helping regular people. Although the bailout done by the government to save failing companies from this crisis was criticized by many people, some of the bailouts were necessary to protect the economy. Otherwise, it would destroy public confidence and possibly lead to systematic failure (Page
~ Irrational Exuberance, Robert Shiller / The Subprime Solution, Robert Shiller ~
Introduction Robert J. Shiller, the author of both of the books I read, is an economist and a professor at Yale University, a New York Times bestseller, and a Nobel Prize winner in Economic Science for his “Empirical Analysis of Asset Prices” piece in 2013 (Pendlebury, D. 2012). He also made the Bloomberg 50’s “Most Influential People in Global Finance” list in 2011 (Bloomberg, 2011) and published many well-known books written on financial markets and behavioral economics. Recently, his name is seen in Japanese media as Japanese Prime Minister Abe Shinzo’s adviser.
In the middle of June, Japan increased sales tax for the first time in 17 years. …show more content…
When he published the first edition of this book in 2000, he also predicted the burst of the IT bubble. The title of this book was first used in a speech given by Alan Greenspan, the Federal Reserve Board Chairman at the American Enterprise Institute in the 1990s. Nowadays, it is used to describe the unreasonable behavior of the stock market; this phrase perfectly matches with the phenomenon observed in subprime loans. In this book, Shiller proposed 12 structural factors that contributed to the boost of the real estate bubble, which were also similar factors that caused the IT bubble to grow in the …show more content…
The problem with bailout is that it must be done promptly, correctly, and without any injustice or unfairness. Moreover, allocation of sufficient resources and setting of proper goals of policies are demanded. A bailout that the U.S. government issues through this subprime loan was criticized by people for caring more about saving banks and bankers than helping regular people. Although the bailout done by the government to save failing companies from this crisis was criticized by many people, some of the bailouts were necessary to protect the economy. Otherwise, it would destroy public confidence and possibly lead to systematic failure (Page