What Not To Do Right Now

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Bob Shiller
Professor of economics at Yale University, author of Irrational Exuberance and The Subprime Solution
I did a questionnaire survey right after the '87 crash to over 1,000 investors. What I learned is that events like this are crises of communication. What's happening now is happening on a very fast time frame. A lot will happen over the weekend, and that's when people reflect and it's very unpredictable.
I think confidence will be restored when we fix the financial system. Right now we're going through a negative bubble. But it can stop. The important thing is to bring back the long-run confidence, so people feel we have a good system for entrepreneurship.
I think it's good luck we have an election right now. 鈥� An election is something that helps mitigate loss of confidence, and we feel we have a choice right now. We're all part of the process.

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