Today on the podcast, Michael Covel speaks with Vernon Smith. Smith is a professor of economics at Chapman University in Orange, CA. He also shared the 2002 Nobel Memorial Prize in Economic Sciences with Daniel Kahneman. Covel and Smith discuss bubbles; some of Smith’s early experiments; how “we’re all born traders”; early “ah ha” moments; early science and engineering beginnings; upsetting the conventional economics “apple cart”; the difference between “hamburgers and haircuts” and the other 25% of goods; Smith’s experience bringing Chicago traders in to lab experiments; how we see the dotcom bubble, spring of 2003, and the real estate bubble today; differences between housing bubbles and stock market bubbles; understanding why bubbles happen; liberty; views on Adam Smith; and Smith’s idealogical journey from socialist to his libertarian leanings today. Want a free trend following DVD: trendfollowing.com/win.