Does Uncertainty Breed Irrationality?
Something else to add to the myriad reasons why the financial industry has collapsed in on itself: According to new research published in Science magazine, when faced with a situation that you have little control over—say, picking the right stock—otherwise rational people become superstitious and trick themselves into "seeing and making connections that do not exist." The study's co-author Jennifer Whitson observes that given the current precarious state of the market, traders "may grasp at any type of pattern that will make them feel better." So if, on your way home tonight, you see a guy in pinstripes and suspenders avoiding the cracks in the sidewalk and touching every second lamppost, you'll know why.