Panic Attacks Startle Wall Street

The Dow Jones Industrial Average, the index that tracks a composite of stock prices of 30 major U.S. corporations, recently experienced drops of 2.5 percent, 4.6 percent and 4.1 percent in less than a week. There are partial explanations for this. But if the best investors in history, including Warren Buffett, discourage reducing stock market movements to rational explanations and prefer instead to see them as reflections of the capricious human psychology, it is probably a good idea for most of us to shy away from seeking perfect answers. Otherwise we might be tempted to support public policies aimed at

Read more at The Independent Institute