Saturday, May 01, 2010

Nova: Mind over Money - Human Economic Behavior


See how a $20 bill gets bought for $28. The Dutch Tulip mania gets covered. Bubbles get created even though the value of item traded will be $0 at the end, and the traders know it, but they buy anyways!

I do think that I would rather have that $100 now than $102 tomorrow. Who wants to spend time and gas coming back to collect $2 more dollars? Furthermore, it's a matter of trust. Maybe the person won't be present to give you that $102 tomorrow.

The scariest thing is there's $60 trillion (Max Keiser gives a figure that's much higher) in derivatives that's been created that will come due sooner or later. Can you say unsustainable? SELL NOW! Maybe buying farmland and ammo isn't so irrational!

[Video] PBS's Nova presents Mind Over Money

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