Instruct: Identify the main and secondary category of Arxiv papers based on the titles and abstracts
Query: Critical Market Crashes   This review is a partial synthesis of the book ``Why stock market crash''
(Princeton University Press, January 2003), which presents a general theory of
financial crashes and of stock market instabilities that his co-workers and the
author have developed over the past seven years. The study of the frequency
distribution of drawdowns, or runs of successive losses shows that large
financial crashes are ``outliers'': they form a class of their own as can be
seen from their statistical signatures. If large financial crashes are
``outliers'', they are special and thus require a special explanation, a
specific model, a theory of their own. In addition, their special properties
may perhaps be used for their prediction. The main mechanisms leading to
positive feedbacks, i.e., self-reinforcement, such as imitative behavior and
herding between investors are reviewed with many references provided to the
relevant literature outside the confine of Physics. Positive feedbacks provide
the fuel for the development of speculative bubbles, preparing the instability
for a major crash. We demonstrate several detailed mathematical models of
speculative bubbles and crashes. The most important message is the discovery of
robust and universal signatures of the approach to crashes. These precursory
patterns have been documented for essentially all crashes on developed as well
as emergent stock markets, on currency markets, on company stocks, and so on.
The concept of an ``anti-bubble'' is also summarized, with two forward
predictions on the Japanese stock market starting in 1999 and on the USA stock
market still running. We conclude by presenting our view of the organization of
financial markets.

16
The categories of this paper are: stat
32
The categories of this paper are: atom-ph
26
The categories of this paper are: bayes-an
31
The categories of this paper are: ao-sci
1
The categories of this paper are: cs
0
The categories of this paper are: hep-ph
22
The categories of this paper are: chao-dyn
28
The categories of this paper are: alg-geom
19
The categories of this paper are: eess
10
The categories of this paper are: q-bio
35
The categories of this paper are: mtrl-th
13
The categories of this paper are: quant-ph
20
The categories of this paper are: acc-phys
25
The categories of this paper are: patt-sol
15
The categories of this paper are: nucl-ex
29
The categories of this paper are: funct-an