By Andrew Lo in Financial Times "The financial crisis has challenged virtually every tenet of modern portfolio management. Investors were told to diversify by holding broad-based long-only portfolios of index funds; those who did so by investing in small-cap, large-cap, value, growth, international...

Banks, battles, and the psychology of overconfidence. Excerpt: "Since the beginning of the financial crisis, there have been two principal explanations for why so many banks made such disastrous decisions. The first is structural. Regulators did not regulate. Institutions failed to function as they...

A Psychology Today Blog by Howard C. Nusbaum, Ph.D. on March 27, 2009 "Given the cultural lip service in the United States to the importance of education, you might think that ignorance is uniformly undesirable. In principle, we should seek to improve our knowledge in all circumstances. However...

From the publisher: "The global financial crisis has made it painfully clear that powerful psychological forces are imperiling the wealth of nations today. From blind faith in ever-rising housing prices to plummeting confidence in capital markets, "animal spirits" are driving financial...

"The first full crisis of globalization means the start of a kinder, more selfless economic system. There are some who say this current global financial recession, this recession/depression that is being felt in London and New York, in Shanghai and Sao Paolo, will not have an impact on the nature...

The focus on complexity as a problem of the financial meltdown of 2008–2009 suggests that crisis is in part epistemological: we now know enough about financial and economic systems to be threatened by their complexity, but not enough to relieve our fears and anxieties about them. What marks the current...