So they were even more susceptible to herd behaviour - once doubts started, they were self-fulfilling. Over-optimism based on imperfect understanding could easily change to over-pessimism, equally based on misunderstanding. Over-inflated asset prices deflated rapidly.
A recent Fortune (1998) article captures the post-crisis disillusionment: “You can’t trust the companies, you can’t trust the governments, you can’t trust the analysts, and you can’t trust the mutual funds managers. Watch out.” “There was a touch of the absurd in the unfolding drama, as international money managers harshly castigated the very same Asian governments they were praising just months before. . .