Computer trading programs have contributed to groupthink in the
investment community. Everyone reacts exactly the same way to market
news.
Paul
On Feb 6, 2009, at 5:55 AM, Luiz Felipe wrote:
Ok, maybe I'm just heavy-handed, but I'm willing to try tar and
feathers, or perhaps exposing in stocks as reward for the too-wise-
politician and too-fearsome-economist.
For the last months, every time the Real(BR currency)-US$ exchange
rate gives any hopes of stabilyzing, off to the telly comes some
government oficial to tell us how doomed is the world... and off to
the roller-coaster goes every index. I'm getting tired.
LF
AlunFoto escreveu:
Bob W just introduced me to a new word in another thread; groupthink.
It seems to me that somehow the whole world economy is hinged on
groupthink by stock traders. It seems that whatever the rest of us
do,
we must by all means stimulate their positive thinking, or else they
will go skittish and bring down recessions on us in their fear of
losing money on the short term. It also seems that they respond to
each other's actions like a dense school of fish.
Since psychology is such an obvious part of it all, it makes me think
that what the economic system needs most is a good shrink, not more
monetary facilitation.
Jostein,
stepping down from his soapbox.
--
Luiz Felipe
luiz.felipe at techmit.com.br
http://techmit.com.br/luizfelipe/
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