Unsurprisingly, Bankers Are Not Nerds

I don't know any investment bankers, but from everything one reads about them they seem like a high-testosterone bunch. Now science shows that, indeed, this seems to be true. The paper is not open-access, but there's a decent summary in the Washington Post. The main point is that higher-testosterone stock traders are more successful than low-testosterone traders. What is more, they do better on days when they have more testosterone in their blood, and their advantage is largest on days when volatility is high.

I expect large numbers of low-testosterone nerds to read this and try blaming more manly men for the recent financial crisis, as the Washington Post journalist is trying already in the opening sentence. That's crap - to be a plausible explanation for recent events it would require a sudden influx of high-testosterone men into the financial professions in recent years, as well as the bizarre assertion that what we needed was fewer good traders and more lousy traders. We high-test men have always been there (well, not me personally, I operate heavy machinery for a living), during good times and bad, and we always will be there because we are the only ones who can do the job well. At most one could argue that a sector dominated by risk-takers will have higher highs and lower lows, but that sounds like a good thing to me.

Face it: high-testosterone men rule the world. There will never be a nerdocracy.

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