Predicting Bubbles and Crashes

The New York Times writes about two university researchers in Ireland who have written a paper, “Mining the Web for the ‘Voice of the Herd’ to Track Stock Market Bubbles,” that asserts that as financial commentators repeat the same optimistic words about the stocks, this language provides evidence that group think has grabbed hold in the period leading up to and during an economic bubble. Patricia Cohen of Arts Beat takes a look at their language test:
http://artsbeat.blogs.nytimes.com/2011/08/02/thinking-cap-predicting-bubbles -and-crashes/