Mind Over Money: Can markets be rational when humans aren't? Airs on PBS April 27, 2010

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Looks fascinating:  Can markets be rational when Humans are not?

Wednesday, April 28 — 09:00pm

Mind Over Money
Why the brain can misfire when money is involved, from Wall Street experts not predicting the economic collapse of 2008 to the irrational money-related decisions everyday people can make.
duration: 60 min

The Disposition Effect
Trust your gut when trading stocks? Do no such thing, argues David Adler, producer of “Mind Over Money.”

The Deciding Factor
A new study at Harvard is exploring how emotions affect our decisions, whether we like it or not. Using analysis and experiment, this film explores why economists failed to predict the 2008 crash and why we so often make irrational financial decisions.

Category: Psychology, Television

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9 Responses to “Mind Over Money”

  1. Thor says:

    I saw this last night! Excellent documentary, I highly recommend it.

  2. bobabouey says:

    Reminds me of some of the themes in Dan Ariely’s Predictably Irrational, great book.

  3. Casual Onlooker says:

    I DVR’ed it, looking forward to seeing the episode. Along similar lines I ran across an interesting article on a science blog http://scienceblogs.com/cortex/2010/04/enculturation_and_wall_street.php

    Expert from the blog…

    “The success of financial reform won’t ultimately depend on the precise details of derivative regulation, or the specific powers of the Consumer Financial Protection Agency. Instead, it will depend on whether or not reform has created a structure – either in the private sector or in government – where people are able to notice the red ten of spades before it’s too late. Every mind has blind spots; that’s an inevitable side-effect of knowledge. The key is to make sure not everyone is blind to the same thing.”

    I haven’t gotten through the whole thing, but it’s an interesting read so far.

  4. lalaland says:

    laid…. back

    with my mind over money and my money over mind……………………………………

  5. jessica says:

    I don’t think “Wall Street experts not predicting the economic collapse of 2008″ is a matter of mind over money. It is a matter of money over mind. I forget the exact quote but it is something along the lines of “it is impossible to get someone to understand something when their job depends on their not understanding it”.

  6. iratherbe says:

    Saw it. Nothing too new. It’s always been known that at the most visceral level markets are driven by fear & greed. Thought perhaps a better selection of a sample population, for example would WWII / depression era folks who are now seniors, middle class parents, working poor or new immigrants, rather than mostly college kids & grad students perhaps result in somewhat different data.

  7. purple says:

    Seems like Monday morning quarterbacking…’oh we’ve figured it for real this time, trust us please’.

  8. marcuskennedy says:

    You can watch “Mind Over Money” online here:

    http://www.pbs.me/

    Click the NOVA icon.

  9. flipspiceland says:

    Not all economists missed the bubble. Some are getting tarred and feathered for taking too much of an advantage of it right now.

    Some economists assisted in creating the bubble and knew it would crash but not when. “Irrational Exuberance” was a catchphrase from the Prime Mover.