The Role of Emotions in Financial Markets

David Frum: I thought you might have been hinting at an idea which I articulated in my podcast conversation with Robert Shiller where I said, so that whole program of Kahneman and Tversky biases were those are going to be experiments conducted on individuals in isolation. And then I think we should hijack Kahneman's metaphor of system one and system two and talk about social cognition because it's not just the individual biases, it's things like conformity, contagion, memetic desire, social learning. Because this whole other world as well is relevant to financial markets and bubbles.