Economics and finance are slowly coming to grips with the fact that human beings are simply not rational. The boom-bust cycle that we are now living gives us a front row seat to that irrationality.
Below is a video by Dan Ariely, a behavioral economist at Duke University, that is not just about market irrationality specifically, but human irrationality more broadly. Ariely gives a wonderful demonstration of how the human mind works– and it is not at all the way Economics textbooks would have you believe.
Enjoy.