Who said the phrase irrational exuberance?
Alan Greenspan
“Irrational exuberance” is the phrase used by the then-Federal Reserve Board chairman, Alan Greenspan, in a speech given at the American Enterprise Institute during the dot-com bubble of the 1990s. The phrase was interpreted as a warning that the stock market might be overvalued.
Are markets irrational?
The reality is that the stock market is wildly irrational at times. These periods of irrational action are the nature of markets. They occur regularly and they will always eventually come to an ugly end. They almost always last longer than seems reasonable.
What is the best synonyms for exuberant?
exuberant
- high-spirited.
- sparkling.
- vivacious.
- zippy.
- zappy.
- zestful.
- zingy.
- feeling one’s oats.
What is bubble burst in stock market?
All stock market bubbles eventually burst, meaning that stock prices suddenly and sharply decline. While any number of events can lead to a market bubble bursting, crashes often occur after a key source of credit dries up.
Where did Greenspan come up with the phrase irrational exuberance?
Greenspan wrote in his 2008 book that the phrase occurred to him in the bathtub while he was writing a speech. The irony of the phrase and its aftermath lies in Greenspan’s widely held reputation as the most artful practitioner of Fedspeak, often known as Greenspeak, in the modern televised era.
Who was the author of Irrational Exuberance book?
The phrase was also used by Yale professor Robert Shiller, who was reportedly Greenspan’s source for the phrase. Shiller used it as the title of his book, Irrational Exuberance, in 2000.
Why was irrational exuberance important to the market?
Precisely because he was considered to be so good at this, an uncharacteristically clear statement such as “irrational exuberance” was viewed as a strong signal to the markets and its meaning was widely discussed by financial journalists at the time of the speech.
