Hamilton Channels Shiller

Jim Hamilton channels some Bob Shiller to explain why stocks have performed so poorly for the last decade. Worth reading.

Shiller on Failure to Forecast the Crisis

Robert Shiller argues that economists distaste of behavioral finance is the reason why warnings about the crisis were ignored. Shiller was one of the few economists who warned about the housing boom, so his experience is worth considering. I still think, however, as I discussed in a previous post, that it was the lack of belief in market efficiency that got us into this mess.