Exuberance and irrationality - Professor Robert Shiller

Two days before Alan Greenspan, then chairman of the US Federal Reserve, coined the phrase 'irrational exuberance' in 1996, Professor Robert Shiller warned him that market levels were irrational.The 1990s were exuberant, much like the 1920s roared, and just like the 1920s, it couldn't last. In his books, 'Irrational Exuberance' and 'The Subprime Solution' he predicted a decade of negative stockmarket returns, a property crash, and bailouts. Here, Interactive Investor editor Richard Beddard taps into his wisdom.

First aired: Fri, 28/11/2008 - 07:19