Basic Instincts - Human Nature and the New Economics.

Peter Lunn descibes the central argument in his new book as : "A revolution has begun in economic thought. For generations economists have assumed that people’s behaviour can, at least approximately, be considered to be independent, selfish and rational. Behavioural economics has now shown, initially through laboratory experiments and increasingly via studies in the real world, that these assumptions are systematically wrong. The evidence is convincing and the implications, while uncertain at present, are likely to be profound. " What are your thoughts on this and how do you think this relates to the 'Credit Crunch' ?