A new analysis of the Greek debt crisis claims to have quantified what many people intuitively believed: That a spike in debt prices in 2011 didn't reflect a rational market appraisal of the country's economy, but a panic that worsened an already dire situation.
It's still a preliminary analysis, and not something on which policy should be based, but the underlying premise is intriguing. Perhaps it's possible to determine precisely when markets tip from equilibrium, a state in which prices reflect supply and demand, into irrationality.
By: Brandon Keim, Edited by: David Cornish
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via Wired.co.uk
http://www.wired.co.uk/news/archive/2012-10/01/greek-debt-crisis
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