23 JAN 2011 by ideonexus
Ignorance Coupled with Intellectual Hubris
I used to think that the problem of information is that it turns homo sapiens into fools — we gain disproportionately in confidence, particularly in domains where information is wrapped in a high degree of noise (say, epidemiology, genetics, economics, etc.). So we end up thinking that we know more than we do, which, in economic life, causes foolish risk taking. When I started trading, I went on a news diet and I saw things with more clarity. I also saw how people built too many theories ba...Folksonomies: technology knowledge
Folksonomies: technology knowledge
When we work with knowledge wrapped in complexity, we grow overly confident. Economics is a perfect example.