The Morgan Housel Podcast The Lifecycle of Greed and Fear
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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.
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The Inevitable Cycle
- The boom-bust cycle is inevitable due to the human life cycle of greed and fear.
- Understanding this cycle helps make sense of market swings.
The Seed of Greed
- Greed begins with the innocent belief that one's views are correct and deserve reward.
- This combines with economic forces like competition and social comparison.
Delusion and Greed
- Delusion sets in as people misinterpret luck as skill and inflate their self-worth.
- This is amplified by the addictive nature of rewards and recognition.