Includes bibliographical references and index.

Machine generated contents note: Introduction * PART I: THE NATURE OF RISK * The Biology and Psychology of Fear * An Economic Definition of Fear and Risk * PART II: THE SUPPLY AND DEMAND OF LOANABLE FUNDS * The Demand Side * The Supply Side * Balance of Capital * PART III: MEASUREMENT OF RISK * The Risk Premium - How Risk Affects Expected Returns * The Fear Premium * The Demographics of Risk and Fear * The Microeconomics of Risk Aversion * PART IV: THE PROBLEMS WITH RISK * Moral Hazard * Privatized Gains and Socialized Losses * Adverse Selection and Imperfect Information * Risk, Uncertainty, Fear, and Gambling* PART V: RISK AND THE MARKET * Market Volatility and Returns * Fear, Panic, and Market Returns * The Fear Factor * PART VI: A HISTORY OF PANICS * A Brief History of the Fear Gripped Market * The Roaring Twenties and the Great Crash * The Depression-Gripped Economy* Along Comes Keynes * PART VII: COORDINATION FAILURES * The Market for Lemmings, or Tale of Two Cultures * The Role of Machines and Programmed trading * The Ratings Agencies - More Perfect Information? * PART VIII: SOCIAL RESPONSIBILITY AS AN ANTIDOTE TO FEAR * Where Were the Regulators * Ethics and Social Responsibility * Wall Street, Main Street, and the Social Contract * PART IX: INSTITUTIONS THE AMELIORATE OR AMPLIFY FEAR* The Media as an Antidote to Fear * Politics That Fan the Flames of Fear * Is There More to Fear than Fear Itself? * PART X: SOLUTIONS AND CONCLUSIONS * Economic Leadership as an Antidote to Fear * A Dozen Prescriptions to Take Back the Markets * Conclusions Introduction * PART I: THE NATURE OF RISK * The Biology and Psychology of Fear * An Economic Definition of Fear and Risk * PART II: THE SUPPLY AND DEMAND OF LOANABLE FUNDS * The Demand Side * The Supply Side * Balance of Capital * PART III: MEASUREMENT OF RISK * The Risk Premium - How Risk Affects Expected Returns * The Fear Premium * The Demographics of Risk and Fear * The Microeconomics of Risk Aversion * PART IV: THE PROBLEMS WITH RISK * Moral Hazard * Privatized Gains and Socialized Losses * Adverse Selection and Imperfect Information * Risk, Uncertainty, Fear, and Gambling* PART V: RISK AND THE MARKET * Market Volatility and Returns * Fear, Panic, and Market Returns * The Fear Factor * PART VI: A HISTORY OF PANICS * A Brief History of the Fear Gripped Market * The Roaring Twenties and the Great Crash * The Depression-Gripped Economy* Along Comes Keynes * PART VII: COORDINATION FAILURES * The Market for Lemmings, or Tale of Two Cultures * The Role of Machines and Programmed trading * The Ratings Agencies - More Perfect Information? * PART VIII: SOCIAL RESPONSIBILITY AS AN ANTIDOTE TO FEAR * Where Were the Regulators * Ethics and Social Responsibility * Wall Street, Main Street, and the Social Contract * PART IX: INSTITUTIONS THE AMELIORATE OR AMPLIFY FEAR* The Media as an Antidote to Fear * Politics That Fan the Flames of Fear * Is There More to Fear than Fear Itself? * PART X: SOLUTIONS AND CONCLUSIONS * Economic Leadership as an Antidote to Fear * A Dozen Prescriptions to Take Back the Markets * Conclusions.