4. Our economic system does not allocate resources as efficiently as we as a society would like to. In particular it is susceptible to favoring the short term over the long term, and tends to develop self-reinforcing trends and bubbles.
Trends and bubbles seem to be exaggerated by the fact that in our globalized world the media reporting tends to synchronize over large parts of the globe when it comes to those trends (e.g. Facebook being hyped almost universally prior to its IPO).
Trends and bubbles seem to be exaggerated by the fact that in our globalized world the media reporting tends to synchronize over large parts of the globe when it comes to those trends (e.g. Facebook being hyped almost universally prior to its IPO).