Meet Homo economicus. He’s rational … acts out of informed self interest … and he underpins the last 100 years of mainstream economic theory. But as a tidal wave of toxic debt swamps our planet, even his most fervent believers are beginning to lose faith.
Alan Greenspan: Those of us who have looked to the self interest of lending institutions, to safeguard shareholder interests, myself especially, are in a state of shocked disbelief.
Dr Jonica Newby:So if even the high priest of the market, Alan Greenspan is having a mea culpa moment, is it now time to declare Homo economicus extinct?
NARRATIONIn making economics a mathematical science – did we somehow forget biology? Based in the UK, Dr John Coates is one of a newer breed of economist known broadly as behavioural economists. And he’s no ivory tower theorist. His doubts about traditional economic doctrine began back in the 90’s – when he spent a decade as a young master of the universe – a trader - on Wall Street.
Dr. John Coates:During the dot-com bubble, people started acting in a very odd manner. They were displaying almost classical clinical symptoms of mania. They were delusional, they were over confident, they were euphoric, they had racing thoughts and diminished need for sleep. I mean these were clinical symptoms.
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An excellent and insightful segment from ABC (Australian Broadcasting Company)
http://www.abc.net.au/catalyst/stories/2525497.htm