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INGLS

LNGUA INGLESA

TEXT

When it comes to market bubbles and how

they are created, very little, if anything, haschanged. This is because human psychologyhas not changed. Massive bubbles arecreated when large numbers of people buyinto new era stories that exaggerate howmuch the world has improved. For example,in the past few years the global equities andhousing bubbles were driven by a giddy faiththat world markets were on a tear and priceswould go up indefinitely. Our animal spiritsare sparked by these tales; we find themirresistible. And since as animals were also

given to a herd mentality, in a bubble wetend to invest too much in the most popularstoriesand continue to do so even after thebubble bursts. As I wrote in my bookIrrational Exuberance in 2000, one of the keystories of our time is the triumph ofcapitalism. This theme was underscored bythe desintegration of the Soviet Union andChinas shift to a market economy. But manytrue believers got the details wrongandbecame convinced, for example, thatcapitalism means market prices will always

go up. In the several decades since theworld-wide rise of market economies, ourperceptions of ourselves have changedgreatlywhile young people back then mighthave become hippies, deeply sceptical of

business, todays young people are veryconcerned with making money. They mighthave temporarily questioned the idea ofcapitalism after the financial crisis, butquickly shrugged off their qualms. People stilllargely believe in the ownership society andin markets. Bubbles are also encouraged by

the Internet and by high-speed datatransmission. People pick up ideas innewspapers, via TV, or online, then spreadthen via word of mouth. Anyone whos ever

played the childrens gameof telephoneknows that, once started, a story or ideatakes on a life of its own. The internet helpedfuel the tech bubble and the financial crisis. Ihave no doubt that new social media like

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Twitter or Facebook will contribute to thenext craze, or that the Internet will haveother, unexpected effects on markets as well.Still, shouldnt we learn something from ourpast mistakes? The good news is that someof us do. In some cases, its generational

theres evidence to suggest that people learnbest from seismic events that happen tothem in their youth (which is why the GreatDepression resulted in lifelong behaviouralshifts for many people). In other cases,however, people simply dont pay attentionto the right informationor it may takethem a while to come to it. Economics is animperfect science, and it often goes off ontangents. For example, a few years back,economists were enamored with the efficientmarketstheorythe idea that the markets

always know best. Now, post-crisis, thatsfinally changing, and even the G20 hasrecently issued a warning about bubbles. Butwhile this awareness may help keep them incheck for a few years, it wont eradicatethem. Nor will it be the end of the worldwhen we go through the next one. Thetriumph of capitalism remains a powerfulstory, and no matter the shocks to come,were unlikely to forget it.

By Robert Shiller. Newsweek - Special Issue,

Dec. 2009.

55.Shillers point of view about youths nowadays isthat they:A) Dont care about Economics.B) Are worried about making money.C) Are never concerned about financial crises.D) Just want to spend money.

56.According to Robert Shiller:

A) Theres a strong faith that prices will godown.B) Human psychology has changed over the years.C) Human beings have a kind of herd mentality.D) Old ideas about markets no longer exist.

57.The author believes in:A) The triumph of capitalism.B) The US housing market.

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C) Old peoples concern about makingmoney.D) New era stories that emphasize the worldsimprovement.

58.The author also believes that the internet willA) Stop fueling the so-called tech bubble.

B) Keep on having effects on markets.C) Destroy old ideas and beliefs about economics.D) Cause prices to rise over the long term.

59.Despite the recent financial crisis,A) Capitalism maintains its strength/power.B) The G20 has not been concerned about market bubbles.C) Economists still believe in the efficientmarkets theory.D) The lower classes are spending more and more money.

60.

According to the text, the post crisis consciousness about bubblesA) Will prevent their appearance from now on.B) May easily eradicate them.C) May maintain them under control for some time.D) Will not help to change ideas about markets.

Gabarito55. B56. C57. A58. B59. A

60. C