Comments on: Banking Crisis Explanation for Dummies http://hackadelic.com/banking-crisis-explanation-for-dummies Think More, Code Less! - Intelligent WordPress Solutions Wed, 01 Sep 2010 19:27:00 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Hackadelic http://hackadelic.com/banking-crisis-explanation-for-dummies/comment-page-1#comment-962 Hackadelic Sun, 05 Apr 2009 19:46:55 +0000 http://hackadelic.com/?p=267#comment-962 Patrick, some thoughts in return: 1. I think Chuck's "skills" are really cheating skills. (You could say he's been inventive, but the fact that he is selling an a priori non-existing prize makes it cheating.) So you are basically saying you want to learn cheating skills. ;-) 2. IMO the reasons why people fall for lottery-style "products" (I'd say "constructs"), is: <div style="margin-left:2em"> (a) There is no up-front, big-bang loss. $2 is not much for the chance to win a $100 prize. There is a very low "entry barrier". (b) The nature of the "product" is known as hazardous, so it is bought in another mindset: You say goodbye to the ante it the very moment you bring it in. If you win, it's luck. If not, you don't complain. Finally, you knew it was hazard. (c) For the "players", a sort of <a href="/of-boiling-frogs-and-chinese-whispers" rel="nofollow">boilng frog effect</a> comes into play. Like with any hazard, there is danger you don't stop until you've lost everything. </div> It is also for the same reasons why lottery-like stuff doesn't need too much selling skills. It only takes a sufficiently attractive prize, and enough visibility (= opportunity for players to join in). 3. This is a trend in progress already. The smart folks have long understood that, for ex., fund managers are not 10% as smart as they (want to) sound, and that "managed" funds is often just another name for "suboptimal performance" funds. (Actually I've read that the vast majority of the "managed" funds have been regularly outperformed by stock-indexes. In other words, "managed" funds performance have been regularly below average economic growth in the corresponding area. Lame!) The less smart folks are beginning to catch up, too. Same is true about "quality of service". In Germany at least, so called "direct banks" (i.e. purely Internet-based banking with no physical terminals) are a long ongoing trend. Why? Because people have understood that there's nothing a "bank consultant" could do for them that they couldn't do for themselves better. 4. I'm not sure if this is possible at all. I suspect the states of mind (or perhaps brain-shapes) required to be a great programmer and a great marketer may be too different to peacefully co-exist in the same head. ;-) Patrick, some thoughts in return:

1. I think Chuck’s “skills” are really cheating skills. (You could say he’s been inventive, but the fact that he is selling an a priori non-existing prize makes it cheating.) So you are basically saying you want to learn cheating skills. ;-)

2. IMO the reasons why people fall for lottery-style “products” (I’d say “constructs”), is:

(a) There is no up-front, big-bang loss. $2 is not much for the chance to win a $100 prize. There is a very low “entry barrier”.

(b) The nature of the “product” is known as hazardous, so it is bought in another mindset: You say goodbye to the ante it the very moment you bring it in. If you win, it’s luck. If not, you don’t complain. Finally, you knew it was hazard.

(c) For the “players”, a sort of boilng frog effect comes into play. Like with any hazard, there is danger you don’t stop until you’ve lost everything.

It is also for the same reasons why lottery-like stuff doesn’t need too much selling skills. It only takes a sufficiently attractive prize, and enough visibility (= opportunity for players to join in).

3. This is a trend in progress already. The smart folks have long understood that, for ex., fund managers are not 10% as smart as they (want to) sound, and that “managed” funds is often just another name for “suboptimal performance” funds. (Actually I’ve read that the vast majority of the “managed” funds have been regularly outperformed by stock-indexes. In other words, “managed” funds performance have been regularly below average economic growth in the corresponding area. Lame!) The less smart folks are beginning to catch up, too. Same is true about “quality of service”. In Germany at least, so called “direct banks” (i.e. purely Internet-based banking with no physical terminals) are a long ongoing trend. Why? Because people have understood that there’s nothing a “bank consultant” could do for them that they couldn’t do for themselves better.

4. I’m not sure if this is possible at all. I suspect the states of mind (or perhaps brain-shapes) required to be a great programmer and a great marketer may be too different to peacefully co-exist in the same head. ;-)

]]> By: Patrick (HKG) http://hackadelic.com/banking-crisis-explanation-for-dummies/comment-page-1#comment-961 Patrick (HKG) Sun, 05 Apr 2009 19:07:08 +0000 http://hackadelic.com/?p=267#comment-961 Well, it's a good joke but it doesn't hit the points of the lesson learnt and what will be the "changes" after that crisis. I have been thinking 1. how could "the" banker tell/sell the smart-assed ideas to public, I want to learn the skills ... 2. who's the losers, why did they being trapped - too naive or too aggressive 3. If people won't fully count on bankers, what will be the changes ... I think more people they will do their investment and the analysis on their own, so the market data and the associated IT technology will be needed for home users 4. Programmers should equip story-telling skills like the bankers, so that they could project their ideas, ordinary people (no matter the wealthy or the poor) won't believe unless they see it or get pain ... Well, it’s a good joke but it doesn’t hit the points of the lesson learnt and what will be the “changes” after that crisis. I have been thinking

1. how could “the” banker tell/sell the smart-assed ideas to public, I want to learn the skills …

2. who’s the losers, why did they being trapped – too naive or too aggressive

3. If people won’t fully count on bankers, what will be the changes … I think more people they will do their investment and the analysis on their own, so the market data and the associated IT technology will be needed for home users

4. Programmers should equip story-telling skills like the bankers, so that they could project their ideas, ordinary people (no matter the wealthy or the poor) won’t believe unless they see it or get pain …

]]>