Let me say simply that, despite the empirical puzzles, I believe that the cost-of-capital effect is likely to be at work when stock prices rise or fall significantly. 1  Karen E Dynan and Dean M Maki, “Does Stock Market Wealth Matter for Consumption?” Finance and Economics Discussion Series Paper 2001-23 (Board of Governors of the Federal Reserve System, May 2001).
Even large financial institutions with excellent (and expensive) defence systems can be lost in the face of cutting-edge threats; they can, of course, work out some of the technical details, but they might miss some of the broader, systemic elements, simply because they ignore relevant information: precedents that affected other sectors; attacker tactics; and effective defences adopted elsewhere.