Tuesday, July 06, 2010

Will we get brain scans of fund managers in the future>

A Neuroscientist Uncovers A Dark Secret : NPR:
"... but Fallon says the orbital cortex puts a brake on another part of the brain called the amygdala, which is involved with aggression and appetites. But in some people, there's an imbalance — the orbital cortex isn't doing its job — perhaps because the person had a brain injury or was born that way.

'What's left? What takes over?' he asks. 'The area of the brain that drives your id-type behaviors, which is rage, violence, eating, sex, drinking.'"
Which would likely be tied to overconfidence and excessive trading etc. So, can you see the future where you get a brain scan of your portfolio manager?

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1 comment:

Highgamma said...

Given the last paragraph, there may be a bunch of fund managers running out right now to get brain scans to see if they can use them as a defense in court.