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Unformatted text preview: C. The Rationality Irrationality of Wall Street 1. “animal spirits” run amuck 2. “irrational exuberance,” – the “herd effect,” 3. Bubbles and musical chairs 4. Lack of trust and understanding 5. Executive Compensation D. The Policy Response: Dodd-Frank: 2,319 pages 1. Oversight of systematic risk 2. Regulation of insurance companies and investment firms 3. Controls over financing by capital markets 4. Establishes the Bureau of Consumer Financial Protection...
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- Spring '08
- Economics, Credit rating, Bureau of Consumer Financial Protection