The very human financial markets

Someone said on television, during yet another discussion about the financial market crisis, that we only have a financial memory of about 20 to 30 years. This means we are doomed to repeat mistakes, and we repeatedly surprise either cycles of the market. This is a human and so frightening.

The financial markets sector often presents itself as a rational, analytical, strictly numbers- and logic-based system. And yet, it seems so vulnerable to the very human qualities of greed, denial, emotions, fear, optimism, and gossip.

Would it help if we call a spade a spade? Will that change how we think about and work with the financial markets?

2 comments

  1. Craig said:

    The world financial markets are like a global emotional barometer.

  2. Zern said:

    Oooo – I like that Craig.
    Is it pointing at “not happy Jan” at the moment”?

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