---

This volume explores the changes in speculative trading in the United States to provide an understanding of the present economic crisis. Readers will find a unified mathematical theory of speculation and new chapters that discuss neoliberalism.

---

For the present edition four chapters have been added which form the fourth 1 part at the end of the book . Entitled The triumph of neoliberalism , the new partexplains how theimplementation worldwide oftheneoliberal agenda paved the way for the present crisis. As a matter of fact, the evidence provided in chapter 9 suggests that the present crisis already began to build up in the mid-1970s. It is around 1975 that (real) US wages reached a peak-level they would never regain in f- lowing decades. It was also around 1975 that the number of strikes began to fall sharply. The mid-1970s also marked the beginning of a huge in ow of immigrants (in large part of Hispanic origin) into the United States. The in ated supply of labor depressed wages and this had the consequence that consumption could be increased only by an unprecedented development of credit. Perhaps the reader may think that to blame the prevailing economic system for the unfolding depression is a fairly common and all too easy temptation.

---

PROLOGUE.- Overall view of speculative markets.- HIDDEN COLLECTIVE DETERMINANTS.- Rational?.- Joint crashes.- Contagion of speculative frenzy.- REGULARITIES IN SPECULATIVE EPISODES.- Peak amplitude: the price multiplier effect.- Peak shape: the sharp peak - flat trough pattern.- Stock market bubbles.- THE TRIUMPH OF NEOLIBERALISM.- Triumph of neoliberalism in economics.- Triumph of neoliberalism in society.- Triumph of neoliberalism in finance.- Is there a way out?.

---

From the reviews of the first edition:

"This book promises a lot. ... I found myself quite fascinated by the multitude of market events which are tabulated and carefully related to each other. ... The book is an excellent example of why the econophysics approach is so very welcome in the finance field. ... the book in general is an interesting and satisfying read." (Jessica James, Quantitative Finance, November 2001)

---