The most interesting point I think is in the conclusion, namely the idea of central banks <i>adding</i> uncertainty in the hopes of bursting bubbles while they're small.<p>"...if the policy-maker (Central Banks) intervened by randomly buying and selling financial assets, two results could be simultaneously obtained. From an individual point of view, agents would suffer less for asymmetric or insider information, due to the consciousness of a 'fog of uncertainty' created by the random investments. From a systemic point of view, again the herding behavior would be consequently reduced and eventual bubbles would burst when they are still small and are less dangerous; thus, the entire financial system would be less prone to the speculative behavior of credible 'guru' traders."