Fat Tails-Too Much Money Chasing Too Few Ideas!

Why do "Fat Tails" occur as often as they do. That is why do markets overshoot both to the upside and downside? Simple really. There's too much liquidity (read that as money) chasing too few good investment ideas. Money goes where its treated the best! In an era where billions of dollars can fling around the globe with a flick of a button, it all tries to rush either in or out of the same small door at the same time. Thus you have 100 year flood scenarios seeming to happen in some asset class or sector about every two years!