Behavioral Insights into Financial Crisis

Abstract

In a few recent years, we experienced market turbulences on the scale and scope not seen since the Great Depression in the 1930s. First, the problems started in the United States with the burst of the real estate bubble and the credit crunch. Soon the crisis spread globally. Its spin-off effects revealed major weaknesses of the Eurozone, particularly unbearable levels of public and private indebtness in a few member states.