Wednesday, October 01, 2008

Lemmings or wildebeest?

Wildebeest Stampede
In case you need further proof that stock market traders and other capitalist flunkies are a bunch of lemmings collectively hurling themselves off the cliff – taking our superannuation savings with them – in a fit of irrational fear, then heed the words of these scientists.

Paul Zak of the Centre for Neuroeconomics Studies at Claremont Graduate University in California says, "There is this sort of herd mentality over-reaction".
"I am not a financial genius. I do know that when you see millions of people in the market essentially freaking out, that spills over into your brain and you get this impulse to do what everyone else is doing," he said.
I just wonder if these traders and investors are wildebeest stampeding to escape predators or base-jumping lemmings. If they are just wildebeest, they'll stampeded until they tire themselves out and look around sheepishly when the dust settles. The irony is they are terrified of the results of their own handiwork.

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At October 02, 2008 9:12 pm, Blogger phil said...

That's why they're called animal spirits, Mark :-)


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