Wall Streeters Juicing To Load Up On Risk

A blog about business and economics.
Feb. 9 2012 5:47 PM

Wall Streeters Juicing To Load Up On Risk

Dr Bissoon, a doctor of osteopathic medicine, now specialises in treating men for testosterone deficiency. While impotence is often thought of as the main symptom of low levels of the hormone, it turns out that financial executives are hoping the hormone will sharpen their faculties and make them more competitive in the workplace at a time when many companies are sending underperforming employees into early retirement.
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Did you know that studies have repeatedly indicated that high testosterone levels are associated with greater risk-preference in financial decision-making? Now of course I would hardly say that risk-aversion as such is a valuable quality in the investment game. But from a social point of view, do you think financial institutions are too eager or too hesitant to load up on risk?

Matthew Yglesias is the executive editor of Vox and author of The Rent Is Too Damn High.