Authored by Robert Shiller, originally posted op-ed at The Guardian,
Speculative markets have always been vulnerable to illusion. But seeing the folly in markets provides no clear advantage in forecasting outcomes, because changes in the force of the illusion are difficult to predict.
In the US, two illusions have been important recently in financial markets.
Are Americans Racists?
Paul Craig Roberts
“Racist” is the favorite epithet of the left. Every white person (except leftists) is a racist by definition. As we are defined as racists based on our skin color, I am puzzled why we are called racists a second, third, and fourth time due to specific acts, such as favoring the enforcement of immigration laws. For example, President Donald Trump says he is going to enforce the immigration laws. For the left this is proof that Trump has put on the White Sheet and joined the KKK.
While US stocks closed near session, and all time highs on Friday, the first green close on inauguration day in over 50 years, Monday has seen a modest case of buyer's remorse, with European stocks sliding, Asian shares mixed and U.S.
Days after Trump’s inauguration, members of Congress are seizing the moment and pushing for America to exit the United Nations, introducing a bill to the House that will repeal the United Nations Participation Act of 1945 and reclaim full American sovereignty. Under a Trump presidency there is a growing belief that the idea of America exiting the UN is not only feasible but could capture the national imagination, as American citizens seek to defeat the corrupt global elite and regain control of their country.