Nobel prize winning economist, Josef Stiglitz has said that economists were at fault for the financial crisis that happened last year. He thinks that old theories that markets behave rationally and have a self correcting mechanism is wrong. ' Homeowners, investors and probably financial executives showed marked irrationalities and may have bought into their own false arguments.' Everyone seemed to believe that house prices will go up forever. Mr. Stiglitz believes that this is the window of opportunity to build new economic theories. Nobel prize winner he may be but Mr. Stiglitz is dead wrong. He should understand that around 95% of people have IQs of between 100 and 110 and will thus behave as a herd, that is without individual reasoning. If he goes back to the dot com bubble he will find many financial wizzards solemnly opining that that was a goldilocks economy and would not fail. In India people believe even now that house prices and the stock market will go up indefinitely, never mind that 95% of people cannot afford houses at the present rates. You talk to anyone and he will be totally convinced that the price of his house will go up and up. If you ask to what level, a million, 10 million or a billion he will suddenly become confused. Unless Mr. Stiglitz can magically change the human brain boom and bust will continue.