There is little doubt that strong personality types can hijack an organization, a political party, a sub-culture, or even for a time a nation, given the right environment of moral exceptionalism driven by fear and greed, and indoctrination. They bring the ambivalent and the weak-willed along with them."
Jesse, Psychopaths on Wall Street, 17 March 2012
"Power attracts pathological personalities. It is not that power corrupts but that it is magnetic to the corruptible. Such people have a tendency to become drunk on violence, a condition to which they are quickly addicted."
Frank Herbert, Chapterhouse Dune, March 1985
"Psychopaths rival pedophiles in the panoply of those we despise and fear. Given this fascination with psychopathy, and the public's current negative view of Wall Street, it is no surprise that Twitter, the blogosphere, and traditional media have been buzzing about "The Financial Psychopath Next Door," an article in CFA Magazine by Sherree DeCovny.
The headline-grabbing factoid in the article was an estimate that 10% of people in the financial services industry are psychopaths. And that's a conservative estimate, according to Christopher Bayer, a Wall Street psychotherapist cited by DeCovny.
DeCovny describes 'financial psychopaths' as individuals who seek thrills, lack empathy, don't care about what others think, are charming and intelligent, and are skilled at lying and manipulation. Citing Richard Peterson, managing partner of MarketPsych, DeCovny notes that these are some of the traits that also predict success on Wall Street.
To understand the implications of this it helps to define psychopathy. It is a psychological condition based on well-established diagnostic criteria. These include glibness and superficial charm, conning and manipulative behavior, lack of remorse and empathy, refusal to take responsibility for one's behavior, and others.
There are some true psychopaths on Wall Street, as there are in all walks of life. The odds increase further when we consider the competitive advantage that some of the characteristics of psychopathy, including willingness to take risks, can provide in the field.
The only way to deal with a true psychopath is to get him or her out of the organization as fast as possible. While full-blown psychopaths are not deterred by fear and do not learn from punishment, 'almost psychopaths' (and borderline sociopaths) can get the message that adverse consequences will follow misconduct. As a result, strictly enforced firm policies can be effective in deterring those who may be tempted to engage in illicit conduct. As long as the firm wants to deter them."
Ronald Schouten, Psychopaths on Wall Street, Harvard Business Review, 14 March 2012
“I think that the depth of Satan's pride is difficult for humans to understand, and therefore it is easy to fall into this error and partake of it, thinking, all the while, that we are instead doing something great and beautiful.”
Fyodor Dostoyevsky, The Brothers Karamazov, 1880
The powerful create a mythology of exceptionalism to justify their success. This can become a self-reinforcing cultural bias, that embeds itself in a system of thought. And it can be used to justify terrible crimes and abuses, which too often end in murder en masse. Over and over again.
Stocks managed to shake off the dodgy start of the talks in Switzerland between the US and Iran.
Gold and silver faded a bit again ahead of a Comex futures option expiration later this week on Thursday the 25th.
The Dollar is bumping up against resistance now. We will have to see if it can extend.
SpaceX is now underwater from its IPO last week. That was a quick trip.
The situations in Iran and the Ukraine continue to evolve. The risks are immense. The consequences are severe. The rewards are for a powerful, soulless few.
"When one knows it is possible to kill without risking either punishment or blame, one kills; or at least one surrounds those who kill with encouraging smiles. If one feels a little disgust, one keeps quiet about it, and before long one extinguishes it, for fear of seeming to lack manliness. One is swept up; it is an intoxication impossible to resist without a strength of soul I am obliged to consider exceptional." Simone Weil, Paris, 1938
Let's see what the rest of the week brings.
Have a pleasant evening.
