5 ms·
News is gain (of knowledge) good or bad. bad news is an opportunity to fix some weak links. Good news is an opportunity to reduce leverage, replenish reserve
by naveen99 4y ago
News is gain (of knowledge) good or bad. bad news is an opportunity to fix some weak links. Good news is an opportunity to reduce leverage, replenish reserves.
Confidence is useful. It reduces volatility in the market.
- nonrandomstring 4y agoWe're using two different senses of a word that seem irreconcilable. You offer a very narrow, statistical definition that pertains to the goodness/accuracy of information. I am using a psychological term that reflects the feelings people have irrespective of ground truths. These are almost opposite (at least incompatible) interpretations. And yet semantically I suspect we completely agree - acting on good information is good, and acting on bad judgement is bad. As I am sure you know, a "confidence trick" is a way to defraud another by influencing their (psychological) confidence (or pessimism) against their better judgement and in spite of the objective facts.