Whom to Blame for Excessive Risk-Taking?

Given the lameness of the bible of psychological diagnostics, the DSM, it’s pretty easy for the lay public to play armchair

extraversion + introversion

psychologist, particularly in the realm of organizational behavior. The Financial Times supplies an unadulterated dose tonight in the form of an article titled, Call in the nerds – finance is no place for extroverts.

Here’s the premise:

There is a compelling body of evidence suggesting that the people most likely to go into the riskier areas of financial services are precisely those least suited to judging risk. Susan Cain’s recently published book Quiet cites a series of studies that suggest that extroverts tend to be attracted to the high-reward environments of investment banking, deals and trading. And, troublingly, these outgoing people also tend to be less effective at balancing opportunity and risk than some of their more introverted peers.

Ms Cain tells the story of Vincent Kaminski to show what can happen to a business when
Continue reading “Whom to Blame for Excessive Risk-Taking?”

The problem is not Cyprus. The problem is the Euro.

 CEO of the Saxo Bank  Lars Seier Christensen express his opinion it was remarkable :-

Polish Złoty and Euro Coins

The real problem is not Cyprus, it is the Euro.

After a few disturbing weeks, I would like to wrap up my comments on Cyprus and, hopefully, turn to other issues going forward. It is astonishing that a EUR 10 billion bailout can keep the world spellbound for so long. But then again, while the amount is not staggering, some of the implications are mind-blowing.

That a small economy can be destroyed over a weekend is in itself very scary. But Cyprus’s fate was basically sealed when the Troika revealed its first version of the bailout package. Continue reading “The problem is not Cyprus. The problem is the Euro.”