While Roubini is optimistic he serves up a reminder for those who believe in The Wisdom of Crowds, rational expectations, efficient markets and market based regulation and incentives:
Instead of the wisdom of the crowd, we got the madness of the crowd.
We should remind ourselves of Extraordinary Popular Delusions and the Madness of Crowds.
Imagine this scenario:
We're in a crowded theatre and someone shouts fire. Everyone starts running for the doors. Do you:
A. Head for the nearest exit pushing and shoving to make sure you're the first one out?
B. Find out who shouted fire and then proceed to determine whether the there is indeed a fire and decide whether the person who shouted "Fire!" was rational and then whether it is rational and efficient to head for the exit pushing, shoving and screaming.