A large body of literature explains the inferior position of unskilled workers by imposing a structural shift in the labor force skill composition. This paper takes a different approach by emphasizing the connection between cyclical variations in skilled and unskilled labor markets. Using a...

Introduction -- Setting the stage -- The core idea -- Autobiography of a failed philosopher -- The theory of reflexivity -- Reflexivity in financial markets -- The super-bubble hypothesis -- Autobiography of a successful speculator -- My outlook for 2008 -- Some policy recommendations