Robert Shiller on Neoclassical vs. Behavioral Finance

[HenryTo]

A must-read, IMHO:

http://www.blackwell-synergy.com/doi/pdf/10.1111/j.1540-6288.2006.00129.x?cookieSet=1

[rffrydr]

Shiller on the mismatch of time and rationality on the SFR market:

http://www.nytimes.com/2009/06/07/business/economy/07view.html?em
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Today is the Tomorrow you worried about Yesterday!

[rffrydr]

Brain action is cause or caused? Like most things in life--like life itself it's both: "caused by" and "realized in."

Some ruffled feathers from Old School.

http://www.marketwatch.com/story/five-reasons-neuroeconomics-is-a-big-fat-hoax?siteid=rss

The human brain is, and always will be, irrational. Not because all their books are based on junk science, anecdotes, broad conclusions from small samples and pretty brain scans calculated to mislead readers. Not because the human brain is historically and genetically "irrational," incapable of reprogramming itself. Not because our brains' "irrational" hemisphere is in a perpetual battle with the rational hemisphere. And not because the human brain prides itself in being irrational for fear of becoming a robot like the masses in "1984," "Fahrenheit 451" and the "Terminator."

Yes, all that's true, but there's is a more accurate and far bigger reason why the human brain is always irrational, vulnerable, easy to control and manipulate. Neuroeconomics is based on a false premise: That "irrational investors" can teach themselves to become "less irrational." And yet, the more we learn about our irrational brains, the more we dupe ourselves into believing we're in control and acting rationally, even though we are not.
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Today is the Tomorrow you worried about Yesterday!