Goldman Sachs posted a third quarter loss today - click here. Yet more doom and gloom for Wall Street. After receiving large bailouts from the Obama administration, it seems that Wall Street are turning against Obama. According to this article published in Slate, the explanation for this is simple: Wall Street blames Obama for the country's ongoing economic woes.
My colleague and former PhD student Gareth Campbell has created a website about the British Railway Mania - click here . This episode has been described by the Economist as probably the greatest bubble in human history. Gareth's website provides background on the Mania and posits some explanations for the 'bubble'. In his explanation of why the bubble happened, Gareth places a lot of emphasis on investor myopia regarding future dividends and uncalled capital. His study of investors during the episode does not support the view that this episode was fuelled by naive and irrational investors.