DAVE | 2007-02-09
Name: Dave
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"Investors form a crowd whose collective action reflects a key aspect of man's nature as a social animal: He is strongly induced to adopt the feelings and convictions of the group."
"In a realm such as investing, in which SO FEW ARE KNOWLEDGEABLE, the TENDENCY TOWARD DEPENDENCE IS VIRTUALLY IMPULSIVE."
"As a result, market decisions are steered not by the rational decisions of individual minds, but by the peculiar collective sensibilities of the herd. The pervasive dependence among its members produces an emotional interpersonal dynamic that, like all feedback mechanisms, has form."
Comment by Robert Prechter
I urge our readers to consider Prechter's statement very carefully, as it should be generalized beyond the investment arena to the political culture as a whole.
It explains WHY "regimes" such as Political Correctness are able to gain such astonishing ascendancy in the face of all reason.
But it also explains WHY people like BW have huge influence.
Aldous Huxley was fond of repeating: "Want to solve your problems? Learn a new way of seeing."
But Huxley omitted Prechter's insight which explains the REAL REASON "the multitudes" are so sheepish: Their ignorance compels them to imitate others in the hopes that those they imitate know more than they.
Accordingly, a singular "seer" such as BW, can transform an entire culture.
These things move fast for entire eras have a habit of dying suddenly.
New worlds get born overnight.
Don't underestimate the insights posted to this blog. They are more important than you imagine.