Trust! Why It Has Been Lost And How To Regain It

by Didier Sornette, 22 October 2008

This essay suggests that a proper assessment of the presently unfolding financial crisis, and its cure, requires going back at least to the late 1990s, accounting for the cumulative effect of the ITC, real-estate and financial derivative bubbles. The essay focuses on the deep loss of trust, not only in Wall Street, but more importantly in Main Street, and how to recover it on the short and long terms. A multi-disciplinary approach is needed to deal with the nonlinear complex systems of the present world, in order to develop a culture of fairness, and of upside opportunities associated with a risky world.

DownloadViewcomplete essay (PDF, 170 KB) (4 Nov. 2008)

Also see the following article in The Investment Executive by James Langton, which discusses Sornette's ideas: Download'Rebuilding Trust in the System', (PDF, 209 KB) mid-November 2008