Thursday, October 9, 2008

Manhattan's Luxury Bubble

“One of the reasons we are so deceived by bubbles is the same reason that we are deceived by professional magicians,” the Yale economist Robert Shiller wrote in his tome Irrational Exuberance. “When clever persons become professionals at deceiving people, and devote years to perfecting an act, they can put seemingly impossible feats before our eyes and fool us, at least for a while. … When we have the equivalent of professional magicians running some of our companies or acting as some of our real estate brokers, we have to expect that what we see is not reality.”

Kind of like the way we distrust advertising and advertisers.

"Irrational Exuberance." The title itself is deceiving. Perhaps it should be renamed "Selfish Malevolence" or "Sinister Consumption: How Capitalism Ate Itself."