Ema
Senior Member
- Messages
- 4,729
- Location
- Midwest USA
-
Welcome to Phoenix Rising!
Created in 2008, Phoenix Rising is the largest and oldest forum dedicated to furthering the understanding of, and finding treatments for, complex chronic illnesses such as chronic fatigue syndrome (ME/CFS), fibromyalgia, long COVID, postural orthostatic tachycardia syndrome (POTS), mast cell activation syndrome (MCAS), and allied diseases.
To become a member, simply click the Register button at the top right.
NYT: The Biology of Bubble and Crash.
- Thread starter Ema
- Start date
BEG
Senior Member
- Messages
- 1,032
- Location
- Southeast US
"Understanding the effects of human biology on the markets should profoundly change how we see them, and their pathologies. At the moment, I fear we have the worst of both worlds — an unstable biology coupled with policies that encourage too much risk-taking during bubbles and too little during crashes, as well as a bonus scheme that penalizes prudent risk-taking. Nature and nurture conspire to create recurrent disasters. Risk management needs to dampen these biological waves, not amplify them."
What an interesting article, Ema. Thanks for posting. My thoughts are what if we extended this behavioral/biological phenomina to other professions? The repercussions could be enormous. I noted that the researcher recommended a mixture of women and older men.
*GG*
senior member
- Messages
- 6,389
- Location
- Concord, NH
Is this only on economics?
BEG
Senior Member
- Messages
- 1,032
- Location
- Southeast US
Nature and nurture? I don't think so. It's a about a physiological stress response which is applicable to many situations. In this case, it's applied to financial investors.