Financial Market Bubbles and Crashes, Second Edition: Features, Causes, and Effects

Economists broadly define financial asset price bubbles as episodes in which prices rise with notable rapidity and depart from historically established asset valuation multiples and relationships. Financial economists have for decades attempted to study and interpret bubbles through the prisms of rational expectations, efficient markets, and equilibrium, arbitrage, and capital asset pricing models, but they have not made much if any progress toward a consistent and reliable theory that explains how and why bubbles (and crashes) evolve and can also be defined, measured, and compared. This book develops a new and different approach that is based on the central notion that bubbles and crashes reflect urgent short-side rationing, which means that, as such extreme conditions unfold, considerations of quantities owned or not owned begin to displace considerations of price. 

• Big Debt Crises
• Infidel
• Mastering the Market Cycle: Getting the Odds on Your Side
• Big Mistakes: The Best Investors and Their Worst Investments (Bloomberg)
• Socionomic Causality in Politics: How Social Mood Influences Everything from Elections to Geopolitics
• Can We Avoid Another Financial Crisis? (The Future of Capitalism)
• Socionomic Studies of Society and Culture - How Social Mood Shapes Trends from Film to Fashion
• The Socionomic Theory of Finance