The extreme volatility of stock markets would be closely related to the over-use of Kahneman's fast system to process context information Psychologists, from many decades ago, have been finding more and more mental operations that operate outside of consciousness. And while the historical tradition says that the unconscious is primarily the repository of repressed thoughts about violence and sex, modern neuro findings speak of a remarkable unconscious rationality, which would help us make quick decisions of a certain quality, being key to Economics and Finance. Unconscious operations underlie many of our inferences and judgments, as well as a large number of decisions and problem solving, including monetary / financial. In fact, the unconscious mind can often do a better job of these things than the conscious mind, which is no small thing for an economic science traditionally thought of as hyper rational, or at least of rational expectations. The story goes that the ...