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So you're suggesting that despite years of education and learning from mistakes, investors never learn from their past mistakes, and that all of these crises yo
by omarish 17y ago
So you're suggesting that despite years of education and learning from mistakes, investors never learn from their past mistakes, and that all of these crises you mentioned are exactly the same thing?
This could make sense if you're talking about currency arbitrage, but investing in entire sectors of a nation is different from trading tenths of a cent of a dollar.
- StrawberryFrog 17y agoSo you're suggesting that despite years of education and learning from mistakes, investors never learn from their past mistakes, and that all of these crises Well, given the words "all of these crises" ... you tell me, do they?
- omarish 17y agoI think you're suggesting that they're all the same.
- StrawberryFrog 17y agoNo two historical events are ever identical. But these crises do have things in common. For one thing, they're all crises. For another, the people who benefit the most on the way up (bankers, brokers) are not the people who suffer the most on the way down (taxpayers, working poor, newly unemployed). That asymmetry, I think, has a lot to do with it. Investors have learned, yeah, learned how to game the cycle by externalising the losses.
- forensic 17y ago>So you're suggesting that despite years of education and learning from mistakes, investors never learn from their past mistakes Investors learn that the best bets are betting on being too big to fail, or being risky as possible to get a massive short term profit and then retiring. (Or alternatively, being hired to clean up the mess you made ala Geithner) These are human beings working for corporations. They have limited liability. They get no benefit by being safe, but have all the incentive in the world to do stupid things that will make several million in bonuses today.