It turns out that morning testosterone levels in male stock traders have a direct relation to risk aversion and profitability. Susan Pinker, the author of Sexual Paradox, describes the study done by John Coates, that shows a direct relationship between elevated testosterone levels in male traders in the morning and increased profits and risk aversion. That begs the obvious question. If you extend that testosterone effect across a firm, say Leahman Brothers, and then across the industry, which is primarily male dominated, does it lead to increased industry-wide "irrational exuberance" over time and unwarranted risk-taking, which culminates in a boom and an eventual bust? Women traders are more risk averse and cautious.
The TV commentatoror asked Pinker, if it would have been better if Leahman Brothers were Leahman Sisters. No, said Pinker. Women in senior positions in regulatory agencies would have been a better safeguard, concludes Pinker.
Walter Derzko, Smart Economy, Toronto,
Author of the soon-to-be-released book: Hard Times Golden Opportunities.. about opportunity recognition in a recession/ depression features 45 opportunity scenarios.
Related Recession / Depression Posts
When will the recession / depression end ? Part 17 Recap from the World Economic Forum in Davos
When will the recession end? Part 16 It's all over, well sort of.
When will the recession end? Part 15 Year-end predictions for 2009 starting to come true
When will the recession end? Part 14 Four options for America's race to the bottom
When will the recession end? Part 13 Thirteen economic questions that economists can't answer
When will the recession end? Part 12 Bad times are good times for startups
When will the recession end? Part 11 Bank of Canada optimism
When will the recession end? Part 9 Humor will signal recession /depression bottom
When will the recession end? Part 7 False signals of recovery
When will this recession end? Part 6 The USA Paradox; Cheer vs Fear vs Transformation
When will the recession end? Part 5 Stop Auto Industry Bailouts, start buying Electric
When will the recession end? Part 4 The double dip housing crash in the USA
When will this recession end ? Part 2 Do you listen to the Optimists or the Pessimists in 2009?
82 Signposts to the current Recession Depression Summary from 2008
© 2005-2009
Walter Derzko -"Changing the world, one idea at a time"©
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