Comments on: How to Avoid Money Mistakes

By: Joseph Johnson

Joseph Johnson — Wed, 13 May 2009 16:56:32 +0000

Lovely blog! Thanks for the useful information.

By: SocraticGadfly

SocraticGadfly — Mon, 15 Dec 2008 05:15:29 +0000

Well, I came here because Bob Carroll was touting Shermer. I’ll tell you the same thing I told him, Michael:

Smith’s “invisible hand” came directly from the metaphysical pages of Deism and is totally unscientific. Shermer knows better that there is neither an “invisible hand” nor a “free market.”

I do hope Bob and SD aren’t back to the days of Penn and Teller’s quondam pseudoskepticism.

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And, Ubermensch, I’m skeptical of those who are skeptical of those who are skeptical of capitalism.

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Max — Shermer probably does it with smoke and mirrors, and by basically ignoring behavioral psychology and behavioral economics.

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And, in at least one of his books, which I reviewed on Amazon, Shermer partially repeated an urban legend about the origin of the typewriter keys’ layout.

By: ubermensch

ubermensch — Mon, 08 Dec 2008 03:51:16 +0000

Ian,

OK, so let’s try being skeptical of capitalism. So what?! What’s the alternative? Perhaps I’m grossly mistaken, but what alternative comes even close to providing the level of per capita wealth, etc. of the market? Besides, maybe I’ve blinked, but where, on earth, has unfettered capitalism EVER occurred?!

I’m skeptical of those who are skeptical of capitalism.

By: The Blind Watchmaker

The Blind Watchmaker — Sun, 07 Dec 2008 00:51:38 +0000

Any learned skeptics’ thoughts on Harry Dent’s demographic spending wave hypothesis?

By: oldebabe

oldebabe — Wed, 03 Dec 2008 17:56:56 +0000

Not only good as advice about individual money management, but also excellent reference guidelines for day-to-day ‘choices’ in general…

By: Max

Max — Wed, 03 Dec 2008 03:17:01 +0000

On the one hand, loss aversion makes us wait too long for a rebound that doesn’t happen. On the other hand, loss aversion makes us wait not long enough for a rebound that does happen. The only question is how to know whether or not a rebound will happen. Fortune telling?

By: Max

Max — Wed, 03 Dec 2008 03:09:59 +0000

Andy, speaking of the law of large numbers, the government can make those who can manage their money (or are just lucky) bail out those who can’t (or are unlucky).
Also, perhaps it’s easier to be rational with other people’s money and without the profit motive. Probably not, but I’d like to see what the studies say.

By: Andy

Andy — Tue, 02 Dec 2008 23:53:30 +0000

Nitpick: The “law of large numbers” does not mean what you said it means.

Max: If people can’t even manage their own money, why do we trust them to manage other people’s money (i.e., why do we trust the government to manage our taxes)?

By: Max

Max — Tue, 02 Dec 2008 22:24:52 +0000

How does Shermer reconcile his Libertarian stance with the fact that people are irrational and make all these money mistakes? Does he argue that bureaucrats are not much more rational?

By: Ian Mason

Ian Mason — Tue, 02 Dec 2008 22:04:41 +0000

Of course it would be out of the question for an American to be skeptical about capitalism itself. Our present economic and political systems function according to unchangable natural laws.
Try reading Bertrand Russell’s intro to his “Skeptical Essays”.