When Everyone Runs for the Exit (Paperback) (ISBN-13: 9781249505280)

The dangers of shouting "fire" in a crowded theater are well understood, but the dangers of rushing to the exit in the financial markets are more complex. Yet, the two events share several features, and I analyze why people crowd into theaters and trades, why they run, what determines the risk, whether to return to the theater or trade when the dust settles, and how much to pay for assets (or tickets) in light of this risk. These theoretical considerations shed light on the recent global liquidity crisis and, in particular, the quant event of 2007.

Author: International Journal of Central Banking, Lasse Pedersen
ISBN-10: 1249505283
ISBN-13: 9781249505280
Publisher: Bibliogov
Language: English
Published: 09/24/2012
Pages: 26
Format: Paperback
Weight: 0.15lbs
Size: 9.69h x 7.44w x 0.05d