Share Traders More Reckless Than Psychopaths, Study Shows

[vminfla]

Source: Spiegel online

What makes individual stockbrokers blow billions in financial markets with criminal trading schemes? According to a new study conducted at a Swiss university, it may be because share traders behave more recklessly and are more manipulative than psychopaths.

Read more: http://www.spiegel.de/international/zeitgeist/0,1518,788462,00.html

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I doubt that this study will withstand the scrutiny of peer-review. Yet, it does seem intriguing.

[Democracyinkind]

1. On the face of it, there is no reason to raise peer-review issues.

I haven't gone through it yet, but just generally: The University of St. Gallen is Switzerlands (and one of Europe's) top business school(s), with a very neoliberal/pro-business stance. It's not as if this was some kind of Hamburger Community College known for anticapitalistic POV's. Generaly speaking, Swiss Universities have very high standards when it comes to academic research. It will be interesting to follow this - what I have read so far sounds like these are real results that should be considered and discussed. Paul Sherrer and Thomas Noll so far had no problems with allegations/accusations of academic fraud etc. - Now that I read the methodology I have no problems in believing that this study can stand any peer review that may be upcoming.

[Maraya1969]

2. It was just recently that a thread was here about how CEO'S had a higher percentage

rate of sociopaths than the regular public. Which makes sense especially when you think of people like Romney who would take over a company and fire all its employees as a regular matter of business.

[valerief]

6. And then call himself a job creator! nt

[HughBeaumont]

8. What's even sadder . . .

. . . is that this stiff, in the mind of the Republican voter, is just the guy to repair the Wall-Street-Destroyed economy - a Wall Street corporate raider and serial firer worth $250 million dollars. It's like trying to cure a kitchen ant problem by spraying your counter with orange juice and letting it dry.

[saras]

3. Totally and completely UNSURPRISING to anyone familiar with game theory

We created an elaborate, complicated set of laws and regulations (and lack of laws and regulations) that rewards precisely this behavior. And we pay successful people in this field ENORMOUS amounts of money, as well as letting them steal pretty much all they can get away with without upsetting their fellow traders. Who would you EXPECT to find working in this system? Monks in training? Earth First activists?

One of Chomsky's major insights is that if a system rewards stupid, it will be filled with stupid. It doesn't take an evil conspiracy on top of the whole thing to manage it, it just happens. For that matter, it doesn't take a Chomsky to figure it out - it's rather obvious.

[Democracyinkind]

9. Great and very insightful comment!

Especially the referrence to game theory. I'm tipping my metaphorical hat to you.

[laundry_queen]

11. BINGO. It is obvious. Great post! nt

[DaveJ]

4. They can hurt a lot more people on Wall Street than elsewhere

If Hitler, Mussolini, etc were alive today they'd probably be executives or traders, where they can do the most damage to others.

[7wo7rees]

5. Time to watch "The Corporation" again.

Download a free book! Ted Nace's Gangs of America (PDF): http://www.gangsofamerica.com/gangsofamerica.pdf

[Quantess]

10. I can't believe I haven't seen that movie yet.

The one with Gordon Gekko...

[7wo7rees]

13. Skip it.

Best line from the movie is not "Greed Is Good."
It is delivered by the angel supervisor played by Hal Holbrook: "Bud, a man stares long enough into the abyss, and the abyss starts staring into him."

See The Corporation instead. It lists and exemplifies the ways corporations are sociopathic and psychopathic.

[Quantess]

15. I borrowed "The Corporation" from the library about a year ago

but I only watched the first disk. I still intend to see the 2nd half of it. It is kind of long.

[Larry Ogg]

7. Saying their more reckless than psychopaths is misleading...

Maybe what should have been said is that, their psychopath "score of 8", is higher then the average psychopath that is locked up behind bars with a score of "3".

Of course no won would want to officially admit that the existence of psychopaths within the financial and political systems is a real problem, or that this problem is at the core of world wide economic destruction.

[laundry_queen]

12. The problem is people view all psychopaths

as serial killers. If you told them their boss was a psychopath they'd say, "NO! Not Bill! Why, he has never been in jail in his life! He has a fine family and is a successful business person. Bill goes to church regularly and gives to charity." They ignore that Bill manipulates and deceives everyone he comes into contact with, that he circumvents rules as it pleases him (and because he is a 'smart' psychopath he is just less likely to get caught than a 'dumb' psychopath), that he regularly has no problems making decisions that harm many people, that he and that he gets ahead off the backs of others. All of that 'other' stuff that seems 'good' is what Bill has learned to do in order to manipulate and deceive people into thinking he's a great person (which he enjoys - he gets high off of manipulating people, it's like a game to him).

Most psychopaths are NOT killers. In the general population it is estimated there are anywhere from 2% to 4% of the population that are psychopaths. A VERY small percentage of those are serial killers. It's how people say - not all psychopaths are serial killers, but all serial killers are psychopaths.

And I agree, no one wants to admit it. But it's the truth. Psychopaths are completely self-assured and many people are attracted to that. They are also good at manipulating people which makes them great salesmen. It is said many have a certain kind of 'charm' because they don't tend to question their own words or actions. Is it any wonder those kind of people end up as CEO's and politicians? It's tailor made for them!

[7wo7rees]

14. Rummy Sez:

Thank you for not calling me a serial killer! ;)