Yale professor and economist Robert Shiller famously predicted the dot-com bubble in his book Irrational Exuberance, which was first published in March 2000.
A few years later, he predicted the end of the housing bubble in the second edition of Irrational Exuberance, which was published in 2005 when home prices were near all-time highs.
We can only dream about what could be included in a third edition, should he decide to write one.
For now, it may be worthwhile to read what Shiller is reading.
The Browser recently interviewed Shiller and asked what books he would recommend. The underlying theme of these books: traits essential to human capitalism. From The Browser:
The Yale economist argues that rising inequality in the US was a major cause of the recent crisis, and little is being done to address it. He suggests reading that give insights into how this happened.
Here are the five books he recommends:
- The Theory of Moral Sentiments – Adam Smith
- The Passions and the Interests – Albert O. Hirschman
- Nudge – Richard H. Thaler and Cass R. Sunstein
- Fault Lines – Raghuram G. Rajan
- Winner-Take-All Politics – Jacob S. Hacker and Paul Pierson
Shiller explains in depth why he recommends these books at The Browser.