Financial Times FT.com

Conservatism overshoots its limit

By Gideon Rachman

Published: October 7 2008 03:00 | Last updated: October 7 2008 03:00

The market for ideas - like the market for shares - always overshoots. Ideas become fashionable and get pushed to their logical conclusion and beyond, as their backers succumb to "irrational exuberance". Then comes the crash.

What we are experiencing now is the bust that has followed the 30-year bull run in conservative ideas that began with the Thatcher-Reagan revolution of 1979-80.

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