- Words: 4046
- Length: 12 Pages
- Topic: Economics
- Paper #: 17268868
Prices crashed. Without the speculative buyers, there were no buyers, and properties remain to this day unsold.
Kindleberger bases his views on a pattern of irrationality. Market theory fails, he hypothesizes, because it is based on investor rationality. He argues, however, that while the investor by and large is rational that the market, being comprised of a large group of investors, witnesses a reduction of rationality as a result of