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Open Daily: 10am - 10pm | Alley-side Pickup: 10am - 7pm
3038 Hennepin Ave Minneapolis, MN
612-822-4611
When Everyone Runs for the Exit

When Everyone Runs for the Exit

Hardcover

Investing & Finance

ISBN10: 1025080866
ISBN13: 9781025080864
Publisher: Hutson Street Press
Published: May 22 2025
Pages: 24
Weight: 0.48
Height: 0.25 Width: 6.14 Depth: 9.21
Language: English

The dangers of shouting fire in a crowded theater are well understood, but the dangers of rushing to the exit in the financial markets are more complex. Yet, the two events share several features, and I analyze why people crowd into theaters and trades, why they run, what determines the risk, whether to return to the theater or trade when the dust settles, and how much to pay for assets (or tickets) in light of this risk. These theoretical considerations shed light on the recent global liquidity crisis and, in particular, the quant event of 2007.

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Investing & Finance