@article{845328,
      recid = {845328},
      author = {Gennaioli, Nicola, and Shleifer, Andrei,},
      title = {A Crisis of beliefs : investor psychology and financial  fragility /},
      pages = {1 online resource (x, 252 pages) :},
      abstract = {"How investor expectations move markets and the economy.  The collapse of Lehman Brothers in September 2008 caught  markets and regulators by surprise. Although the government  rushed to rescue other financial institutions from a  similar fate after Lehman, it could not prevent the deepest  recession in postwar history. A Crisis of Beliefs makes us  rethink the financial crisis and the nature of economic  risk. In this authoritative and comprehensive book, two of  today's most insightful economists reveal how our beliefs  shape financial markets, lead to expansions of credit and  leverage, and expose the economy to major risks. Nicola  Gennaioli and Andrei Shleifer carefully walk readers  through the unraveling of Lehman Brothers and the ensuing  meltdown of the US financial system, and then present new  evidence to illustrate the destabilizing role played by the  beliefs of home buyers, investors, and regulators. Using  the latest research in psychology and behavioral economics,  they present a new theory of belief formation that explains  why the financial crisis came as such a shock to so many  people--and how financial and economic instability  persist.A must-read for anyone seeking insights into  financial markets, A Crisis of Beliefs shows how even the  smartest market participants and regulators did not fully  appreciate the extent of economic risk, and offers a new  framework for understanding today's unpredictable financial  waters."--},
      url = {http://library.usi.edu/record/845328},
}