Even Keynesians call it "Irrational Exeburance"

There are a few Keynesian fools who saw the problems — even though they are suggesting the wrong cure. Among them, Roubini, Stiglitz and Soros. Not sure many others did.

Interestingly, the 3 of them are quoted in this Bloomberg report.
Oct. 6 (Bloomberg) -- Nobel Prize-winning economist Joseph Stiglitz said U.S. unemployment will keep rising and should be the focus for policy makers, and gains in the stock market show investors have been “irrationally exuberant” about a recovery.

“There’s a lot of risk going ahead of some big bumps,” he said yesterday in a Bloomberg Television interview from Istanbul, citing housing, commercial real estate and consumers’ inability to pay off credit cards because of job losses. “There’s a very big risk that markets have been irrationally exuberant.”

His comments echo New York University Professor Nouriel Roubini’s view that “markets have gone up too much, too soon, too fast,” and billionaire George Soros, who warned yesterday that America’s economic recovery will be “very slow.”
It’s “pretty clear that the situation will continue to get worse,” Stiglitz said
Roubini, who accurately predicted the financial crisis, warned in an Oct. 3 interview in Istanbul of “the risk of a correction, especially when the markets now realize that the recovery is not rapid and V-shaped, but more like U-shaped.”

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