Irrational Exuberance evoked Alan Greenspan's well known 1996 comment on the absurdity of stock market valuations. This book gave a chilling warning of the impending dot-com bubble's burst. It presents 12 factors that created the boom and suggests policy changes for better managing irrational exuberance. The book's second edition warns of the impending housing bubble burst. Author Robert Shiller dismisses the misconception that the market is rational and instead clarifies that it is more influenced by emotion, speculation and, herd behavior.
“A modern classic of ‘serious’ economics that demands to be read, and can be enjoyed, by the interested nonspecialist.”
“A dose of realism that serious investors will ignore at their peril.”
— The Wall Street Journal
“The point of Irrational Exuberance is not to help investors dump their houses before the current exuberance fades. It is to deepen our understanding of the events we are watching as one bubble gives birth to another.”
— The International Herald Tribune