The original title was "What the opposite of Irrational Exuberance" (thanks Tahoe):
Floyd Norris reports:
Another stock market milestone was reached last week, when the S.&P. 500 fell under the Dec. 5, 1996, close of 744.38. The Dow, for what it is worth, is still above the 6,437.10 level it sported then.
(As I write this, the S.&P. is at 714 and the Dow at 6,880.)
That night Alan Greenspan uttered his legendary “irrational exuberance” comment. It was actually a question:
”How do we know when irrational exuberance has unduly escalated asset values, which then become subject to unexpected and prolonged contractions as they have in Japan over the past decade?”
![](http://4.bp.blogspot.com/_8rpY5fQK-UQ/Sazi3xkCsXI/AAAAAAAAGC8/bFKuHssa2-U/s400/exh.png)
rational apathy.
ReplyDeleteI think the answer lies in a 2x2 grid with rational/irrational forming the x axis and exuberance and restraint forming the y axis.
ReplyDeleteIrrational Restraint?
Wall Streeters are calling it "irrational despondency."
ReplyDeleteFrankly, I think it's RATIONAL REASONING, but I'll go with "rational apathy."
Jack... keep an eye out for the 2x2 tomorrow.
ReplyDelete