Five. Amplification Mechanisms: Naturally Occurring Ponzi Processes

Chapters in this book

1. Frontmatter i
2. Contents vii
3. Figures and Tables ix
4. Preface to the Third Edition xi
5. Preface to the Second Edition, 2005 xix
6. Preface to the First Edition, 2000 xxv
7. Acknowledgments xxxi
8. One. The Stock Market in Historical Perspective 1
9. Two. The Bond Market in Historical Perspective 11
10. Three. The Real Estate Market in Historical Perspective 18
11. Part One. Structural Factors
12. Four. Precipitating Factors: The Internet, the Capitalist Explosion, and Other Events 39
13. Five. Amplification Mechanisms: Naturally Occurring Ponzi Processes 70
14. Part Two. Cultural Factors
15. Six. The News Media 101
16. Seven. New Era Economic Thinking 123
17. Eight. New Eras and Bubbles around the World 150
18. Part Three. Psychological Factors
19. Nine. Psychological Anchors for the Market 165
20. Ten. Herd Behavior and Epidemics 175
21. Part Four. Attempts to Rationalize Exuberance
22. Eleven. Efficient Markets, Random Walks, and Bubbles 195
23. Twelve. Investor Learning—and Unlearning 214
24. Part Five. A Call to Action
25. Thirteen. Speculative Volatility in a Free Society 225
26. Appendix. Nobel Prize Lecture: Speculative Asset Prices 239
27. Notes 281
28. References 321
29. Index 339