Summary |
Much has happened in the past few years to make the theory of reflexivity that is expounded in this book more relevant and more acceptable. Financial markets have been in turmoil. The breaking of the currency peg in Thailand in August 1997 unleashed a financial crisis that spread from one country to another like a wrecking ball. The Russian default in August 1998 put long term capital management, a hedge fund operating on the efficient market hypothesis, into jeopardy and only the timely intervention of the federal reserve bank of new York prevented a meltdown. Subsequently the spread of the internet and other innovations in information technology touched off a boom/bust sequence that was eerily reminiscent of the conglomerate boom analyzed in this book.
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