NOVA recently released an interesting and insightful documentary, “Mind over Money”. How can markets be rational when humans are not? It helps explain why stock in bankrupt companies can still go up 500% before going to zero. The movie presents studies that show how people will emotionally overbid for items even though they know they’re over-paying for it. For example, one study had a man purchase a $20 bill for $28. In another study, a class of traders irrationally bid up an asset they knew would become completely worthless within 15 time periods.
Watch “Mind over Money” free online (about 53 minutes long) at the following link:
Watch NOVA’s “Mind over Money” Documentary
I love your vblogs, and I seen you have only done 2 this year that I can find. I figured you must be paying that tanning tax and reading the obuma care package law, sum 1000 plus pages long is a reall cliffhanger since it isn’t really taking effect until 2014, ‘xcept for those tanning taxes you are sure paying, right now. There’s a real paradox there sum wheres.