February 24, 2013
To paraphrase JP Morgan, sometimes nothing undermines your financial judgement so much as an eejit with an economics degree.
At its root, most economics – and economists – start with the fundamental assumption that people are rational, and thus will make logical choices. This would be wonderful, but it’s not true. If there’s one thing we can take from this current crisis – and all the ones before, it’s this: irrationality is everywhere.