When the facts change, I change my mind. What do you do? -- John Maynard Keynes

Saturday, October 12, 2013

Why Everyone (including the Government) Is Stupid

The following applies to everything and everyone . . .

15 Biases That Make You Do Dumb Things With Your Money: ". . . . Daniel Kahneman, who won the Nobel Prize for his work studying cognitive psychology, once said, "I never felt I was studying the stupidity of mankind in the third person. I always felt I was studying my own mistakes." When you realize you are as biased as everyone else, you've won the game."

15 Biases That Make You A Dumb Investor | The Big Picture: "From Morgan Housel, here are several cognitive biases that cause you to do dumb things with your money. Be sure to check out the entire article. 15 Biases That Make You Do Dumb Things With Your Money:
1. Normalcy bias
2. Dunning-Kruger effect
3. Attentional bias
4. Bandwagon effect
5. Impact bias
6. Frequency illusion
7. Clustering illusion
8. Status quo bias
9. Belief bias
10. Curse of knowledge
11. Gambler’s fallacy
12. Extreme discounting
13. Ludic fallacy
14. Restraint bias
15. Bias bias . . . " (read more at links above)


The Big Picture

Financial Crisis - The Telegraph

JohnTheCrowd.com | The Sailing Website

Craig Newmark - craigconnects