Why did US stock markets experience such a bubble in the 1990s? Why did Greenspan 'allow' the bubble to occur? Why did investors appear to act irrationally and indulge in such vehement speculation? Why the euphoria?If the response of the Fed after the stock market crash had been more accommodating in terms of liquidity there would have been less of a credit squeeze, ... Thus, the bubble may have shrunk more slowly and deflated without major implications for the real sector of the economy. ... High leverage and a lack of appreciation of risk have been perennial biases in stock markets throughout recorded history.
|Title||:||Booms, Bubbles, and Busts in US Stock Markets|
|Author||:||David L. Western|
|Publisher||:||Psychology Press - 2004|