Quote Originally Posted by Fuchs View Post
No, according to the real world.
....
There's never everyone in the market a panicking chicken, nor is ever everyone misinformed. Bonds such as long-term business relationship with mutual trust as well as openness in regard to bookkeeping protect against stupidities.
September 2008 was a market panic. Rumors can drive-off buyers of an investment bank, like “two major clients have stopped trading” or “XYZ is going to buy the bank at 25% below market price”.
Quote Originally Posted by Fuchs View Post
We may differ in our ideas about the threshold to healthiness in this case, though.
Yes, for this purpose we do.