The Fear Factor

1. Front Matter

   Pages i-xi

   PDF

2. Introduction

   1. Introduction

      • Colin Read

      Pages 1-4

3. The Nature of Risk

   1. Front Matter

      Pages 5-5

      PDF

   2. The Biology and Psychology of Fear

      • Colin Read

      Pages 7-15

   3. An Economic Definition of Fear and Risk

      • Colin Read

      Pages 16-17

4. The Supply and Demand of Loanable Funds

   1. Front Matter

      Pages 19-19

      PDF

   2. The Demand Side

      • Colin Read

      Pages 21-31

   3. The Supply Side

      • Colin Read

      Pages 32-43

   4. Balance of Capital

      • Colin Read

      Pages 44-49

5. Measurement of Risk

   1. Front Matter

      Pages 51-51

      PDF

   2. The Risk Premium — How Risk Affects Expected Returns

      • Colin Read

      Pages 53-58

   3. The Fear Premium

      • Colin Read

      Pages 59-66

   4. The Demographics of Risk and Fear

      • Colin Read

      Pages 67-75

   5. The Microeconomics of Risk Aversion

      • Colin Read

      Pages 76-82

6. The Problems with Risk

   1. Front Matter

      Pages 83-83

      PDF

   2. Moral Hazard

      • Colin Read

      Pages 85-92

   3. Privatized Gains and Socialized Losses

      • Colin Read

      Pages 93-104

   4. Adverse Selection and Imperfect Information

      • Colin Read

      Pages 105-111

   5. Risk, Uncertainty, Fear, and Gambling

      • Colin Read

      Pages 112-117

7. Risk and the Market

   1. Front Matter

      Pages 119-119

      PDF

A fascinating discussion of the role played by fear in financial market panics. Professor Read demonstrates, in easy-to-understand terms, that rising market fear portends to major financial declines. He explains the science and the economics of fear and shows that the financial market has learned how to capitalize on investor or economic fear

• capital
• depression
• Keynes
• Rating
• Volatility
• investments and securities

• School of Business and Economics, SUNY College, Plattsburgh, USA

  Colin Read

COLIN READ is Professor of Economics and Finance at SUNY College at Plattsburgh, and a columnist for the Plattsburgh New York Press Republican newspaper. He has taught economics and finance for 25 years. His recent books include Global Financial Meltdown: How We Can Avoid the Next Economic Crisis and International Taxation Handbook (edited with G. Gregoriou). He has written dozens of papers on market failure, volatility, and housing markets, writes a monthly column in a business trade journal, and appears monthly on a local PBS television show to discuss the regional and national economy.

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