Minding The Markets

An Emotional Finance View of Financial Instability

by David Tuckett

Endorsements and praise for Minding the Markets

Minding the Markets is a real contribution... a book the world really needs. - George Akerlof, Nobel Laureate and American Economist
Read this book if you want to understand the behaviour of financial markets. - Mervyn King, Governor of the Bank of England
David Tuckett's work on the emotional underworld of asset management and financial markets is a true tour de force... As psychoanalyst, exceptional interviewer and rare interdisciplinary scholar he has brought sensitivity and sensibility to a world of unreason. - Neil J.Smelser, University Professor of Sociology Emeritus, University of California, Berkeley, USA; and former Director of the Center for Advanced Study in the Behavioural Sciences in Stamford, California and President of the American Sociological Association (1997)
This thought-provoking book lets asset managers tell their stories and reveals a reality quite different from standard finance theory. Theirs is a world of uncertainty rather than known risks, of information overload, short-term thinking, and fear of loss and liability – topped by euphoric dreams of fame. Unlike those behavioral economists who condemn emotions for impeding rational action, David Tuckett reproaches financial theory for ignoring uncertainty and its direct consequence, mental states of doubt, trust, or confidence. He argues that the standard theory itself is part of the problem, as illustrated by the financial crash of 2008. Yet this catastrophic crisis could also be an immense opportunity for a fundamental reform of policy as well as financial theory. Minding the Markets is a highly readable book that introduces the reader at first hand to the emotions and mentality of asset managers. -Gerd Gigerenzer, Director, Max Planck Institute for Human Development, Berlin; and former Professor of Psychology, University of Chicago, USA
This book by a psycho-analyst is one of the most original and thought-provoking analyses of the current financial crisis and the emotional underpinnings of financial market behaviour. It synthesizes the emotional thread running through past crises, such as the Tulip mania, Southsea Bubbles and dot.com manias. Compulsory reading for anyone interested in root-and-branch reforms in financial regulations. -Andrew Sheng, Chief Adviser to the China Banking Regulatory Commission, Adjunct Professor Tsinghua University, Beijing and former Chairman of the Securities and Futures Commission of Hong Kong