The Myth of the Rational Market：A History of Risk, Reward, and Delusion on Wall Street

Thefinancialcrisisof2008andsubsequentGreatRecessiondemolishedmanycherishedbeliefs—mostsignificantly,thetheorythatfinancialmarketsalwaysgetthingsright.JustinFox'sTheMythoftheRationalMarketexplainswherethatideacamefrom,andwhereitwentwrong.Asmuchanintellectualwhodunitasaculturalhistoryoftheperilsandpossibilitiesofrisk,italsobringstolifethepeopleandideasthatforgedmodernfinanceandinvesting—fromtheformativedaysofWallStreetthroughtheGreatDepressionandintothefinancialcalamitiesoftoday.It'satalefeaturingprofessorswhomadeandlostfortunes,battledfiercelyoverideas,beatthehouseatblackjack,wrotebestsellingbooks,andplayedmajorrolesontheworldstage.It'salsoastoryoffree-marketcapitalism'swarwithitself.