The Morgan Housel Podcast
The Lifecycle of Greed and Fear
Aug 31, 2023
The discussion dives into the fascinating lifecycle of greed and fear, revealing how these emotions shape our decisions. It highlights how greed often starts innocently but spurs a boom-and-bust cycle, leaving many caught in its grip. The conversation emphasizes that these feelings are deeply rooted in human behavior, influencing expectations and economic interactions. This inherent cycle of desire and self-doubt is explored in depth, showing why it will persist in our lives.
12:12
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Quick takeaways
- Greed starts with the feeling of deserving a reward for efforts and views, fueled by competition and social comparison.
- As greed progresses, delusion creeps in, leading to overconfidence and increasingly risky behavior, eventually culminating in fear and capitulation.
Deep dives
The Life Cycle of Greed and Fear
The podcast explores the innate part of human nature that forms the life cycle of greed and fear, which economists and philosophers have been studying for decades. Despite efforts to eliminate the boom-bust cycle in economies, it is clear that greed and fear will always be a part of human behavior. Understanding the origins of greed and fear can help make sense of economic fluctuations. Greed starts with the feeling that one deserves a reward for their efforts and views. This feeling is fueled by competition, adaptation, and social comparison. Delusion, recognition, and addictive behavior are subsequent stages of greed.
