Economist Say the Summer Market Rally Was Irrational

Stiglitz says market rally shows irrational exuberance

Policymakers should focus on rising unemployment, said Noble Prize-winning economist Joseph Stiglitz, and investors are unduly excited about the economic recovery. "There's a lot of risk going ahead of some big bumps," he said. "There's a very big risk that markets have been irrationally exuberant." Nouriel Roubini, a professor at New York University, and billionaire George Soros also warned about the rally in the stock market compared with the economic recovery.

-Bloomberg