Psychology Behind Market Bubbles

PSYCHOLOGY BEHIND MARKET BUBBLES

Name: Nikita Polyakov
Student ID: w137768641
Word Count: 1633
Due Date: 21.11.2013
Module: Behavioural Finance
Module Code: BFBL508
Student Contact Email: n.polyakov@hotmail.it

CONTENTS

1) Executive Summary.............................................................................................................p2
2) Introduction..........................................................................................................................p3
3) Great Market Crash of 1929.................................................................................................p4
3.1) Roaring Twenties.......................................................................................................p4
3.2) Stock Investment........................................................................................................p4
3.3) The Great Depression.................................................................................................p4
4) Mortgage and CDOs Crisis..................................................................................................p5
4.1) Macroeconomic Imbalances.......................................................................................p5
4.2) Housing Boom............................................................................................................p5
4.3) Financial Meltdown....................................................................................................p5
5) Psychology Behind Stock Market Bubble............................................................................p6
5.1) Overconfidence...........................................................................................................p6
5.2) Framing.......................................................................................................................p6
5.3)...