asterisk2a + pain + economics   1

Penetrating Insights On Why The Market Feels Like A Colonoscopy | ZeroHedge
In a widely quoted experiment by Nobel Prize winner Daniel Kahneman (with others, published in 2003) over 600 subjects undergoing colonoscopies were given different versions of the same procedure. One set got essentially a short version, where the pain of the process peaked out near the end of the exam. The other group got a longer version, with the last few moments in relatively little discomfort. The second group reported much less pain when asked about the experience than the first.

Kahneman’s colonoscopy is a tailor made, if coarse, analogy to the ongoing sovereign debt woes in Europe. ...

The bottom line is that pain, like beauty, is in the eye of the beholder.
financialmarkets  financialcrisis  richardkoo  economic-thought  economics  balance  sheet  recession  deleveraging  GFC  UK  2012  sovereign  debt  crisis  Europe  pain  psychology  behavioral  finance 
january 2012 by asterisk2a

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