it was a huge coincidence...
after my post i read an article talking about "blind optimism" written by a psychoanalyst that is a economic psychology professor; she talks about the stock market but industry's bubble is cited... i will translate from portuguese the best parts of the interview (sorry if i made any mistakes)
she says the investors due to "optimism excess" minimize the risks and they should "meet loss" to not go crazy
Q: how would Freud explain market crisis?
A: excessive optimism makes people forget market is cyclic... when everything is fine it is hard to keep in mind there are loss risks because our memory isnt perfect; you dont remember anything went wrong or you blame other people and it hates frustration either.
we just think what we can accept (my emphasys) and thats why we think everything will work perfectly
Q: why there are people who tolerate more loss than others?
A: because there are people have more knowlegde and tolerate frustration more, then they are not so naive and know how to play the game; she says a few people know how much the have earned so they can lose some ammount
Q: do investors behave as if they were only one?
A: sometimes, first investors study possibilities and think themselves... others decide to do the same thing but they dont know the whole thought; it is like a wireless phone and it happened in the
internet bubble. first investors thought about buying a search company and the last ones came and thought "if it ends in dot com, i will buy it/them"
Q: why do the economists always make mistakes when predicting the future?
A: nobody is a fortuneteller tosay what will happen... if you are desperate you believe in anything. under torture statistics confesses anything (it was her answer) :lol:
as i told in the beginning she talks about the stock market
i just put this interesting interview here to explain better my vote, i also think it is a good read even translated by me though
i am not saying at all LLLL will ruin or lose value (i really believe in them and i have many of them) or there will be a bubble again... nobody knows even if will or when will be, but there are some people here that came from stock market know markets are cyclic (as she also stated) but industry is something different from the others, industry is a market as well though
sorry for this big post
