Foolish´syndrome
Thursday, October 8, 2009 @ 10:43 AM
Trias de Bes´ El hombre que cambió su casa por un tulipán (The man who exchanged his house for a tulip. Premio de Hoy 2009.), on speculative bubbles along the history, sets a great compendium of symptoms and solutions as part of the analysis of human behaviour during the speculation fury:
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Symptoms
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Solutions
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Overconfidence
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Permanent caution
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Self-delusion
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Draw conclusions by yourself
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Envy of the benefit of others
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Forget about what others earn
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Money greed
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Be content when having enough
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Irrational logic
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Remember the causes of the initial rise
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Confusion between value and price
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Calculate implied yields
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Not admitting you do not know
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Invest only in what is known
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Excessive risk-taking
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Not to get into debt or do it with caution
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Belief in the infinite demand
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Not to value assets just in terms of resale
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Delay to come to terms with the loss
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Selling at loss if necessary
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Human nature. I always think that a deep knowledge of human nuture is the best compass in life. That is why classical philosophers readings need to come back to our hands.
A good lawyer, economist, doctor , architect or engineer always need a deep formation on humanities to never forget what the human being is and that human dignity needs to be at heart of every proffession and proffesional.
Yes, these are simple things but we very often forget about them in the middle of the everyday´s hurly burly.
Maria
Tuy river ( between Spain and Portugal)
Portugal reflections by Caneles at Flickr.com