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?”

2012 The Year of Euro & Past themes

It might be interesting to see the past , every year has been personified by some of the personalities left their impression on financial markets.

Its a year by year collection pick out with a different fad that really captured the attention in that year and dollars of the investors Class.

Year

Themes

Personified by

1996

Initial public offerings, Microbrews, Irrational Exuberance

Alan Greenspan, Federal Reserve Chairman

Continue reading “2012 The Year of Euro & Past themes”

Financial Themes and Personified by :

Its a year by year collection pick out with a different fad that really captured the attention in that year and dollars of the investors Class.

Year Theme of the  Year Personified by
1996 Initial public offerings, Microbrews, Irrational Exuberance Alan Greenspan, Federal Reserve Chairman
1997 Viagra, Cigars, Telecom/Cable John Malone,  Chairman of Liberty Media
1998 E-tail, Venture Capital, Click & Mortar Jeff Bezos, Founder and CEO of Amazon.com Continue reading “Financial Themes and Personified by :”