Minding the Markets : An Emotional Finance View of Financial Instability

The 2008 Financial Crisis Showed That Human Emotion Has A Critical Impact On Financial Markets. Until Now, Economic Theories Have Failed To Take This Into Account. At The Heart Of The Worst Financial Crisis In World History Was A Failure To Organise Markets In A Way That Adequately Controls The Very Human Emotion And Behaviour Which Trading Unleashes. The Newly Established Discipline Of 'emotional Finance', Pioneered By David Tuckett, Draws On Principles Of Psychoanalysis To Enable Financial Markets To Be Understood In A Completely New Way. By Recognising The Crucial Role Played By Unconscious Needs And Fears, The Influence Of Groups And The Nature Of Uncertainty In All Investment Activity, Minding The Markets Provides A Deeper Understanding Of The Markets And Timely Ideas About How To Incorporate That Understanding Into Policies To Make Markets Safer. Based On Candid And In-depth Interviews With Over 50 Fund Managers Internationally, This Groundbreaking Book Not Only Presents A Fresh Academic Theory, But Also Reveals The Truth About What Happens In The Emotionally-charged Real World Of Financial Trading. In This Groundbreaking Book, Tuckett Argues That Most Economists' Explanations Of The Financial Crisis Miss Its Essence; They Ignore Critical Components Of Human Psychology. He Offers A Deeper Understanding Of Financial Market Behavior And Investment Processes By Recognising The Role Played By Unconscious Needs And Fears In All Investment Activity-- The Special Characteristics Of Financial Assets -- Four Fund Managers -- Narratives, Minds And Groups -- Divided States -- Finding Phantastic Objects -- Experiencing News -- Divided Masters -- Experiencing Success And Failure -- Emotional Finance And New Economic Thinking -- Making Markets Safer. David Tuckett. Includes Bibliographical References And Index. Psychoanalysis professor and economist David Tuckett advances brave theories about the dangerous way financial theory fails to consider human emotion and behavior. He explains that if market analysts continue to ignore this missing link, they will invite a repeat of the 2008 financial crisis. Tuckett seems genuinely mystified that financial theory has yet to account for how humans really make decisions. At times, the book suffers from the lack of an attentive editor. The author occasionally gets rolling on a deep point and wanders off into an academic swamp. Overlook these minor rough spots and you'll learn a lot. This analysis is critical to understanding mob mentality in investing, even if Tuckett's explanations aren't always so smooth. Praise to him anyhow for his inspection of the holes in current financial theory and for his forensic analysis of the 2008 crisis. He presents viable ideas about how economic theory must change. getAbstract recommends his work to financial professionals with a solid grasp of economic theory, to market investors and to psych students with an interest in finance. All readers need a measure of patience, since the book is a deep dive into the finer points of economics and psychology Cover......Page 1 Halftitle......Page 2 Title......Page 4 Copyright......Page 5 Dedication......Page 6 Contents......Page 8 Acknowledgements......Page 9 Preface......Page 11 1 The Special Characteristics of Financial Assets......Page 20 2 Four Fund Managers......Page 45 3 Narratives, Minds, and Groups......Page 74 4 Divided States......Page 90 5 Finding Phantastic Objects......Page 105 6 Experiencing the News......Page 126 7 Divided Masters......Page 143 8 Experiencing Success and Failure......Page 159 9 Emotional Finance and New Economic Thinking......Page 176 10 Making Markets Safer......Page 208 Notes......Page 226 References......Page 232 Index of Respondents......Page 242 Index......Page 244 "In this groundbreaking book, Tuckett argues that most economists' explanations of the financial crisis miss its essence; they ignore critical components of human psychology. He offers a deeper understanding of financial market behavior and investment processes by recognising the role played by unconscious needs and fears in all investment activity"-- Provided by publisher Tuckett argues that most economists' explanations of the financial crisis miss its essence; they ignore critical components of human psychology. He offers a deeper understanding of financial market behaviour and investment processes by recognizing the role played by unconscious needs and fears in all investment activity.