LMAO...oH YEAH...NOBODY UNDERSTANDS...LOL...i KNEW BEFORE YOU PUT ANYONE IN THE mri SCANNER, BUT i AINT TELLING YOU - NOTHING!!....YOU PEOPLE PAYING NO ATTENTION AND NOT READING ANYTHING BUT LABELS AND PRICE TAGS JUST KEEP WONDERING....LMAO!!! n the 1630s, Holland was gripped by the world’s only known case of “tulip mania.” The intensely colored flowers were already a luxury item before then, but their prices leaped when tulips with flame patterned petals hit the market, and they continued rocketing to previously incomprehensible levels. The price for a single bulb soon far surpassed what a skilled worker could make in an entire year, and others commanded enough money to buy homes or land. It didn’t last, of course. The inevitable and dramatic crash in prices left people puzzling over the tulip bubble for centuries to come. An early account blamed it on a group delusion, fueled by emotional highs spreading through the population like an infection. Subsequent observers found reasons in the Dutch market structure of the time, or government policies that encouraged wanton trading, or even fallout from the bubonic plague. In this more staid view, people were logically trading based on information the market presented to them. Emotions, or other vexations of human psychology, had no role in it. Hundreds of years and many bubbles later, people are still trying to work out how the dramatic overvaluations, then stunning collapses, of bubbles come to pass. A recent study turned to the wellspring of human psychology—the brain—and found bubble-related activity there, including a signal in some people that predicted the ensuing crash. “We don’t know why prices go up in a bubble, or why the crash starts,” says Alec Smith, who conducted the study while a postdoctoral fellow in Colin Camerer’s lab at the California Institute of Technology in Pasadena. “Putting people in the scanner is one way to try to understand this.”
Posted on: Sat, 20 Sep 2014 23:53:34 +0000
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