Sudip Bandyopadhyay’s Blog

Charles Mackay’s Extraordinary Popular Delusions and the Madness of Crowds, published in 1841, with its vivid description of celebrated financial bubbles is a very powerful book written about market psychology.  The infamous Dutch tulip mania, the South Sea Company bubble and the Mississippi Company bubble mirror the economic hysteria and fluctuations in the global financial [...]

Alan Greenspan, the former US Federal Reserve chairman, confessed that he had failed to anticipate the financial crisis and said “Those of us who have looked to the self-interest of lending institutions to protect shareholders’ equity (myself especially) are in a state of shocked disbelief.” Mr.Greenspan had faith that banks were prudent enough to make [...]