FT.com / US / Economy & Fed - What a feeling: how emotions may yet save the economy

Happy Talk

First, talk the economy down, then get the bailout/legislation you want, then talk the economy up.

FT.com / US / Economy & Fed - What a feeling: how emotions may yet save the economy:

"...“we will never really understand important economic events unless we confront the fact that their causes are largely mental in nature”. Our “ideas and feelings” about the economy are not purely a rational reaction to data and experience; they themselves are an important driver of economic growth – and decline."