Is the “Greater Fool” Theory Alive in the Hospital World?

PAUL LEVY

Originally published 2/5/11 on [Not] Running A Hospital

In the last four decades, we have witnessed a series of investment “bubbles” that have all collapsed. It seems that there is no end to the number of people with cash who will be intoxicated by a good story line, even when there is little substance to back it up. All of these stories depend on the capital markets to bolster the price of investments, counting on the “greater fool” theory: There is always someone who will take on a bad investment at just the wrong time, providing a good return to those who are lucky enough to escape before the crash.

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