December 30, 2008

Lifecycle of a Financial Bubble – Minsky

Finance/Investment,Psychology,The World

Today I read the book Manias, Panics and Crashes.  And I think the following outline of a financial bubble is very insightful to understand the past and the future. Rise of the Bubble     1. An outside shock to the macroeconomic system. A displacement is an outside event or shock that changes horizons, expectations, anticipated profit opportunities, behavior—‘some sudden advice many times unexpected’     2. The economic outlook and the anticipated profit opportunities would improve in at least one important […]

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December 2, 2008

Aspects of investor psychology

Finance/Investment,Psychology

I read a paper regarding investor psychology today.  And here are some notes: Some psychological biases that affect investors: 1. Overconfidence.  Investors are overconfident about their predictions or judgments. 2. Optimism.  Investors underestimate the likelihood of bad outcomes over which they have no control.  Investors underestimate the role of chance in human affairs and misperceive games of chance as games of skill. 3.  Hindsight.  Events people did not anticipate appear almost inevitable after they occur.  Hindsight promotes overconfidence, by creating […]

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May 6, 2008

Professional Critical Thinker

Psychology,The World

Humans have the tendency to assign meanings to random events or signals. A lot of the time we fall into the survivorship bias, where we only see what we want to see and ignore the misses. This skeptic shows how we should maintain a critical mind and debunk the pseudo sciences.       You need to a flashplayer enabled browser to view this YouTube video

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May 6, 2008

What makes us happy – Synthesizing Happiness

Psychology,The World

The secret to happiness. The study of our brain has revealed that happiness is synthesized by our brain. In a way it is like cognitive dissonance. Our mind has an immune system that perceived the world in a way that makes us happy. You need to a flashplayer enabled browser to view this YouTube video

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March 10, 2008

Inner Working of a Cell

Business/Management,Physical Science,Psychology,The World

http://multimedia.mcb.harvard.edu/media.html Very amazing video. In a way, a human being is just a compilation of individual automatons, with each automaton has its own biological function. Together, the automatons make up a complex system which we define as one human being. If you think of a human being as a cell, with its designated functions, we can imagine any organizations to have its own consciousness and spirit, just like a biological being. Therefore, it does not surprise me that an army, […]

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