“Oh what a night!” September 14, 2012 could go down as a crucial time in the post-global financial crisis era. I know there will be many who think I'm being a tad dramatic, but they are those who underestimate the importance of what Keynes called “animal spirits”.
In fact, this is what he said in his famous book, 'The General Theory of Employment, Interest and Money':
“Even apart from the instability due to speculation, there is the instability due to the characteristic of human nature that a large proportion of our positive activities depend on spontaneous optimism rather than mathematical expectations, whether moral or hedonistic or economic. Most, probably, of our decisions to do something positive, the full consequences of which will be drawn out over many days to come, can only be taken as the result of animal spirits – a spontaneous urge to action rather than inaction, and not as the outcome of a weighted average of quantitative benefits multiplied by quantitative probabilities.”