Cautionary Tales with Tim Harford

Buried by the Wall Street Crash

4 snips
Dec 6, 2019
Explore the lives of two iconic economists, Irving Fisher and John Maynard Keynes, who both faced ruin after the Wall Street Crash. Discover how their contrasting responses to financial failure highlight the importance of adaptability. Delve into Fisher’s risky investments and the unexpected parallel with UFO cult beliefs. Learn about Keynes's vibrant life filled with art and adventure, and the psychological struggle of holding onto beliefs in the face of harsh realities. The interplay of hope, failure, and resilience takes center stage.
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ANECDOTE

The UFO Cult

  • Dorothy Martin led a cult predicting the end of the world via alien messages.
  • Social scientists infiltrated the group to observe their reaction to the prophecy's failure.
INSIGHT

Forecasting Follies

  • Economists, like cult leaders, attempt to predict the future, a dangerous endeavor.
  • Irving Fisher, once more renowned than Keynes, illustrates the perils of failed predictions.
ANECDOTE

Fisher's Success

  • Both Keynes and Fisher were accomplished academics and investors.
  • Fisher, a health enthusiast, became wealthy through inventions and his "Index Number Institute".
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