Financial Crisis: Bad Poker Players?
I have just finished reading Jonah Lehrer‘s book How we decide.
First, I loved the book. It is very well written and interesting throughout.
Second, when I reached the section on poker players, I was struck. It instantly made me think about the very recent financial crisis. Not because, I want to compare financial instruments to gambling, but rather because the decision process within both groups (financiers and poker players) is, in my view, quite similar.
In the book, when Lehrer talks about good poker players, he relates to their ability to stop calculating the odds and refer to emotions. Basically, the rational side of the brain becomes rather secondary.
The financial crisis appeared to be the exact opposite: students of finance and economics forgot (or put aside) the “something is not right” feeling and favoured some set in stone math prinicples.
Many reporters seem very keen on saying that economists did not see the crisis coming, but it makes me wonder if it’s not more that analysts and economists indeed saw it coming, but they instead ignored their perceived emotions and continued to refer to overcomplicated calculations that could not fail – theoretically.
Was the financial crisis really unpredictable or was it a badly played poker hand?
What’s the” cause of our global crisis?”, was “CASINO gambling”, that people were so desperately of instant money to their lives to move on. As a “call in sick” from their jobs is a excusable, the choice of pleasure, thinking, that casino is much better money for them to earned than, their job salary .This was the number one.. destroyed peoples lives loss and their homes . Did the state think about what will cause lost of peoples lives interest, in working hard than easy money to earn in casino, i have so much encounter and heard from friends that they loss their home because of gambling. One more evidence is congested traffic going on to Las Vegas Nevada and from other places that people got crazy and hurry up to rich to casino to check in.on time.The best thing for the casino they grow more faster than our economy standard life living in regular bases.Casino should not allow or open during at week days, they should have entertainment and conference purposes only,So at week end from Friday night gambling will be open to public, So this way our economy will bring back our great life to live in prosperity to our environment for this country. A happy family that our children should have good example and good guidance to priority their future. Not Gambling in casino..