--- title: "Meaning & Key Takeaway of: What we need to understand is, one, that…" description: "\"What we need to understand is, one, that there are market failures; and two, that there are things like asset bubbles and irrational exuberance. There ..." image: "https://sms4smile.com/quotes/i/669/nouriel-roubini-15217_anxiety_what-we-need-to-understand-is-one-that-t_1075324.jpg" --- # What we need to understand is, one, that there are market… ![“What we need to understand is, one, that there are market failures; and two, that there are things like asset bubbles and irrational exuberance. There are periods of booms, bubbles, and manias. These things, if left to themselves, can lead to crashes, to busts, to panics.” quote by Nouriel Roubini](https://sms4smile.com/quotes/i/669/nouriel-roubini-15217_anxiety_what-we-need-to-understand-is-one-that-t_1075324.jpg) [Download](https://sms4smile.com/quotes/i/669/nouriel-roubini-15217_anxiety_what-we-need-to-understand-is-one-that-t_1075324.jpg) [Open image](https://sms4smile.com/quotes/i/669/nouriel-roubini-15217_anxiety_what-we-need-to-understand-is-one-that-t_1075324.jpg) > “What we need to understand is, one, that there are market failures; and two, that there are things like asset bubbles and irrational exuberance. There are periods of booms, bubbles, and manias. These things, if left to themselves, can lead to crashes, to busts, to panics.” [Nouriel Roubini](https://sms4smile.com/quotes/author/nouriel-roubini/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Markets naturally experience cycles of optimism and panic, but unchecked bubbles and failures can cause severe downturns. **In simple terms:** Markets swing between hype and crash. Key Takeaway Watch for early signs of excess. Themes economics risk behavioral finance Mood cautious analytical Type analytical warning When to use this quote - investment decisions - policy making - financial planning - risk assessment Key Concepts market cycles irrational exuberance asset bubbles Questions to Reflect On - How can regulators better detect bubbles early? - What personal habits prevent overconfidence? A Different Perspective Even with warnings, human greed often overrides caution. ★ ★ ★ ★ ★ No ratings yet [Anxiety](https://sms4smile.com/quotes/about/anxiety/) [Crashes](https://sms4smile.com/quotes/about/crashes/) [Customer](https://sms4smile.com/quotes/about/customer/) [Exuberance](https://sms4smile.com/quotes/about/exuberance/) [Failure](https://sms4smile.com/quotes/about/failure/) [Failures](https://sms4smile.com/quotes/about/failures/) [Investing](https://sms4smile.com/quotes/about/investing/) [Irrational](https://sms4smile.com/quotes/about/irrational/) [Mania](https://sms4smile.com/quotes/about/mania/) [Market](https://sms4smile.com/quotes/about/market/) [Market failure](https://sms4smile.com/quotes/about/market-failure/) [Panic](https://sms4smile.com/quotes/about/panic/) ## Related quotes > [Piracy often reflects market failures on the part of producers rather than moral failures on the part of consumers.](https://sms4smile.com/quotes/henry-jenkins/piracy-often-reflects-market-failures-on-the-part-of-producers-rather/) [Henry Jenkins](https://sms4smile.com/quotes/author/henry-jenkins/) > [But our energy woes are in many ways the result of classic market failures that can only be addressed through collective action, and government…](https://sms4smile.com/quotes/sherwood-boehlert/but-our-energy-woes-are-in-many-ways-the-result-of-classic-market/) [Sherwood Boehlert](https://sms4smile.com/quotes/author/sherwood-boehlert/) > [Many politicians and pundits claim that the credit crunch and high mortgage foreclosure rate is an example of market failure and want government to…](https://sms4smile.com/quotes/walter-e-williams/many-politicians-and-pundits-claim-that-the-credit-crunch-and-high/) [Walter E. Williams](https://sms4smile.com/quotes/author/walter-e-williams/) > [Business schools are failing to teach the students about the risks of market failures. We need to include some material on market failures in…](https://sms4smile.com/quotes/pankaj-ghemawat/business-schools-are-failing-to-teach-the-students-about-the-risks-of/) Pankaj Ghemawat > [Nothing rectifies out-of-control market failures like a healthy dose of government intervention and mountains of bureaucracy.](https://sms4smile.com/quotes/george-carlin/nothing-rectifies-out-of-control-market-failures-like-a-healthy-dose/) [George Carlin](https://sms4smile.com/quotes/author/george-carlin/) > [“The typical undergraduate microeconomics textbook describes cases where markets are unlikely to produce efficient outcomes. These textbooks often claim that, in principle, government intervention…](https://sms4smile.com/quotes/jason-brennan/the-typical-undergraduate-microeconomics-textbook-describes-cases/) [Jason Brennan](https://sms4smile.com/quotes/author/jason-brennan/) > [I do tend to think that things that have incredibly long time horizons often do involve market failures.](https://sms4smile.com/quotes/peter-thiel/i-do-tend-to-think-that-things-that-have-incredibly-long-time/) [Peter Thiel](https://sms4smile.com/quotes/author/peter-thiel/) > [I believe in market economics. But to paraphrase Churchill - who said this about democracy and political regimes - a market economy might be…](https://sms4smile.com/quotes/nouriel-roubini/i-believe-in-market-economics-but-to-paraphrase-churchill-who-said/) [Nouriel Roubini](https://sms4smile.com/quotes/author/nouriel-roubini/) > [It's important for the Fed, hard as it is, to attempt to detect asset bubbles while they're forming.](https://sms4smile.com/quotes/janet-yellen/it-s-important-for-the-fed-hard-as-it-is-to-attempt-to-detect-asset/) [Janet Yellen](https://sms4smile.com/quotes/author/janet-yellen/) > [Asset bubbles have happened even without not-so-easy money. And, in a depressed economy, where alternative uses of money are not great, people are going…](https://sms4smile.com/quotes/paul-krugman/asset-bubbles-have-happened-even-without-not-so-easy-money-and-in-a/) [Paul Krugman](https://sms4smile.com/quotes/author/paul-krugman/) > [When interest rates are low we have conditions for asset bubbles to develop, and they are developing at the moment. The ultimate asset bubble…](https://sms4smile.com/quotes/george-soros/when-interest-rates-are-low-we-have-conditions-for-asset-bubbles-to/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [“It is ludicrous to believe that asset bubbles can only be recognized in hindsight,” he wrote. “There are specific identifiers that are entirely recognizable…](https://sms4smile.com/quotes/michael-lewis/it-is-ludicrous-to-believe-that-asset-bubbles-can-only-be-recognized-2/) [Michael Lewis](https://sms4smile.com/quotes/author/michael-lewis/) > [It is ludicrous to believe that asset bubbles can only be recognized in hindsight.](https://sms4smile.com/quotes/michael-burry/it-is-ludicrous-to-believe-that-asset-bubbles-can-only-be-recognized/) [Michael Burry](https://sms4smile.com/quotes/author/michael-burry/) > [Our main aim globally is to connect more women to the economy because we know there is a specific market failure there: women are…](https://sms4smile.com/quotes/arancha-gonzalez/our-main-aim-globally-is-to-connect-more-women-to-the-economy-because/) [Arancha Gonzalez](https://sms4smile.com/quotes/author/arancha-gonzalez/) > [Climate change represents the greatest and widest-ranging market failure ever seen](https://sms4smile.com/quotes/nicholas-stern/climate-change-represents-the-greatest-and-widest-ranging-market/) [Nicholas Stern](https://sms4smile.com/quotes/author/nicholas-stern/) ## More by Nouriel Roubini > [I am not going to say I told you so, but I did.](https://sms4smile.com/quotes/nouriel-roubini/i-am-not-going-to-say-i-told-you-so-but-i-did/) [Nouriel Roubini](https://sms4smile.com/quotes/author/nouriel-roubini/) > [The economic costs, the financial costs, the job losses, the income losses, the fiscal costs of bailing out financial system are becoming larger and…](https://sms4smile.com/quotes/nouriel-roubini/the-economic-costs-the-financial-costs-the-job-losses-the-income/) [Nouriel Roubini](https://sms4smile.com/quotes/author/nouriel-roubini/) > [Technology is spurring innovation, and the so-called "demographic dividend" has brought change.](https://sms4smile.com/quotes/nouriel-roubini/technology-is-spurring-innovation-and-the-so-called-demographic/) [Nouriel Roubini](https://sms4smile.com/quotes/author/nouriel-roubini/) > [What is important to me is that when I write something, people listen to me. I provide my wisdom to people, whether they agree…](https://sms4smile.com/quotes/nouriel-roubini/what-is-important-to-me-is-that-when-i-write-something-people-listen/) [Nouriel Roubini](https://sms4smile.com/quotes/author/nouriel-roubini/) > [I believe investors should invest for the long run, so I don't buy and sell. I usually maintain the classic index of global equities,…](https://sms4smile.com/quotes/nouriel-roubini/i-believe-investors-should-invest-for-the-long-run-so-i-don-t-buy-and/) [Nouriel Roubini](https://sms4smile.com/quotes/author/nouriel-roubini/) > [The Treasury plan is a disgrace: a bailout of reckless bankers, lenders and investors that provides little direct debt relief to borrowers and financially…](https://sms4smile.com/quotes/nouriel-roubini/the-treasury-plan-is-a-disgrace-a-bailout-of-reckless-bankers-lenders/) [Nouriel Roubini](https://sms4smile.com/quotes/author/nouriel-roubini/) > [I love and collect contemporary art and go to all the art fairs. I love Damien Hirst and Matthew Barney. I grew up in…](https://sms4smile.com/quotes/nouriel-roubini/i-love-and-collect-contemporary-art-and-go-to-all-the-art-fairs-i/) [Nouriel Roubini](https://sms4smile.com/quotes/author/nouriel-roubini/) > [I think it's true that the 1 Percent or the elite are living in a world of, maybe, excessive privilege, and they don't fully…](https://sms4smile.com/quotes/nouriel-roubini/i-think-it-s-true-that-the-1-percent-or-the-elite-are-living-in-a/) [Nouriel Roubini](https://sms4smile.com/quotes/author/nouriel-roubini/) > [Celebrity has become a burden. There are more demands on your time. People think it is glamorous to fly places. But it is not…](https://sms4smile.com/quotes/nouriel-roubini/celebrity-has-become-a-burden-there-are-more-demands-on-your-time/) [Nouriel Roubini](https://sms4smile.com/quotes/author/nouriel-roubini/) > [No country can be complacent in making sure that excessive debt of the household doesn't create excesses and weaknesses in the financial system. Everything…](https://sms4smile.com/quotes/nouriel-roubini/no-country-can-be-complacent-in-making-sure-that-excessive-debt-of/) [Nouriel Roubini](https://sms4smile.com/quotes/author/nouriel-roubini/) > [Once you run current-account deficits, you depend on the kindness of strangers. This might be the beginning of the end of the American empire.](https://sms4smile.com/quotes/nouriel-roubini/once-you-run-current-account-deficits-you-depend-on-the-kindness-of/) [Nouriel Roubini](https://sms4smile.com/quotes/author/nouriel-roubini/) > [I am quite international. My background, born in Turkey. My family is a Jewish family from Iran, so I went from Turkey to Iran…](https://sms4smile.com/quotes/nouriel-roubini/i-am-quite-international-my-background-born-in-turkey-my-family-is-a/) [Nouriel Roubini](https://sms4smile.com/quotes/author/nouriel-roubini/) > [But in the financial markets, without proper institutional rules, there's the law of the jungle - because there's greed! There's nothing wrong with greed,…](https://sms4smile.com/quotes/nouriel-roubini/but-in-the-financial-markets-without-proper-institutional-rules-there/) [Nouriel Roubini](https://sms4smile.com/quotes/author/nouriel-roubini/) > [For me, geopolitical issues are becoming more important, because how can you understand economy if you don't understand geopolitics? People think economists just deal…](https://sms4smile.com/quotes/nouriel-roubini/for-me-geopolitical-issues-are-becoming-more-important-because-how/) [Nouriel Roubini](https://sms4smile.com/quotes/author/nouriel-roubini/) > [I think globalization actually maintains and fosters various elements of national and cultural identities. I don't think everything is being homogenized. If anything, your…](https://sms4smile.com/quotes/nouriel-roubini/i-think-globalization-actually-maintains-and-fosters-various-elements/) [Nouriel Roubini](https://sms4smile.com/quotes/author/nouriel-roubini/) [Explore all 43 Nouriel Roubini quotes ](https://sms4smile.com/quotes/author/nouriel-roubini/) ## More Anxiety quotes > [“Anything that you find yourself worrying about regularly may find you suddenly wanting unrealistic changes.”](https://sms4smile.com/quotes/nagisa-tatsumi/anything-that-you-find-yourself-worrying-about-regularly-may-find-you/) Nagisa Tatsumi > [Bein Crazy is the least of my worries.](https://sms4smile.com/quotes/jack-kerouac/bein-crazy-is-the-least-of-my-worries/) [Jack Kerouac](https://sms4smile.com/quotes/author/jack-kerouac/) > [The answer to deep anxiety is the deep adoration of God.](https://sms4smile.com/quotes/ann-voskamp/the-answer-to-deep-anxiety-is-the-deep-adoration-of-god/) [Ann Voskamp](https://sms4smile.com/quotes/author/ann-voskamp/) > [“Fear of seeing a police car pull into the drive. Fear of falling asleep at night. Fear of not falling asleep. Fear of the…](https://sms4smile.com/quotes/raymond-carver/fear-of-seeing-a-police-car-pull-into-the-drive-fear-of-falling/) [Raymond Carver](https://sms4smile.com/quotes/author/raymond-carver/) > [I get nervous when I don't get nervous. If I'm nervous I know I'm going to have a good show.](https://sms4smile.com/quotes/beyonce-knowles/i-get-nervous-when-i-don-t-get-nervous-if-i-m-nervous-i-know-i-m/) [Beyonce Knowles](https://sms4smile.com/quotes/author/beyonce-knowles/) > [“Every invention comes through anxiousness.”](https://sms4smile.com/quotes/rakesh-wadhwani/every-invention-comes-through-anxiousness/) [Rakesh Wadhwani](https://sms4smile.com/quotes/author/rakesh-wadhwani/) > [“Do Not Be Anxious 25 e “Therefore I tell you,  f do not be anxious about your life, what you will eat or what you will drink,…](https://sms4smile.com/quotes/anonymous/do-not-be-anxious-25-e-therefore-i-tell-you-f-do-not-be-anxious-about/) [Anonymous](https://sms4smile.com/quotes/author/anonymous/) > [“Nothing happens on its own, you have to make things happen. If you really want to come out of your stressful situation than you…](https://sms4smile.com/quotes/subodh-gupta/nothing-happens-on-its-own-you-have-to-make-things-happen-if-you/) [Subodh Gupta](https://sms4smile.com/quotes/author/subodh-gupta/) > [“I guess if we're talking about my anxiety, the even truthier truth is it started way before that.”](https://sms4smile.com/quotes/kerry-winfrey/i-guess-if-we-re-talking-about-my-anxiety-the-even-truthier-truth-is/) [Kerry Winfrey](https://sms4smile.com/quotes/author/kerry-winfrey/) > [I was a very good student. Procrastinating gives me anxiety, and getting a B really ticked me off. Sure, I didn't always want to…](https://sms4smile.com/quotes/josie-loren/i-was-a-very-good-student-procrastinating-gives-me-anxiety-and/) [Josie Loren](https://sms4smile.com/quotes/author/josie-loren/) > [“The suspense: the fearful, acute suspense: of standing idly by while the life of one we dearly love, is trembling in the balance; the…](https://sms4smile.com/quotes/charles-dickens/the-suspense-the-fearful-acute-suspense-of-standing-idly-by-while-the/) [Charles Dickens](https://sms4smile.com/quotes/author/charles-dickens/) > [The party in Alobar’s head, which agitation and anxiety were throwing, now was crashed by a notion: existence can be rearranged.](https://sms4smile.com/quotes/tom-robbins/the-party-in-alobar-s-head-which-agitation-and-anxiety-were-throwing/) [Tom Robbins](https://sms4smile.com/quotes/author/tom-robbins/) > [As you know, I have been very open about my struggle with social anxiety.](https://sms4smile.com/quotes/summer-walker/as-you-know-i-have-been-very-open-about-my-struggle-with-social/) [Summer Walker](https://sms4smile.com/quotes/author/summer-walker/) > [Anxiety is not to be managed it is a sin that needs to be repented of](https://sms4smile.com/quotes/mark-driscoll/anxiety-is-not-to-be-managed-it-is-a-sin-that-needs-to-be-repented-of/) [Mark Driscoll](https://sms4smile.com/quotes/author/mark-driscoll/) > [“I’ve always seen this in you, ever since you were a little girl — this hunger to love other people into their highest selves…](https://sms4smile.com/quotes/jennifer-elisabeth/i-ve-always-seen-this-in-you-ever-since-you-were-a-little-girl-this/) [Jennifer Elisabeth](https://sms4smile.com/quotes/author/jennifer-elisabeth/) [Browse all 4,944 Anxiety quotes ](https://sms4smile.com/quotes/about/anxiety/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "What we need to understand is, one, that there are market failures; and two, that there are things like asset bubbles and irrational exuberance. 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