Sunday, August 25, 2013

Women poker players, and finance

http://www.theguardian.com/commentisfree/2013/aug/25/women-poker-players-financial-crisis
Victoria Coren:
The millions of new young players, many with maths degrees, brought a revolution in technical strategy. Belligerent old Texans, still relying on primitive ideas of aggression and bluster, have been left in the dust. You do not succeed by being more "competitive" than your opponent, but by being cleverer.
In other words, Mr Wheeler's poker point proves that he overestimates the value of muscle. We have all realised this in poker, but the business world is glacially slow to catch on.
It is the masculine prejudices of the stock market, towards big-hat aggression and high-pressure manoeuvres, that led to the financial mess where we currently find ourselves. Macho competition on trading floors led to over-reaching, borrowed money, crashes – and subsequent demands for huge bonuses from the men who triggered them, on the grounds that this bull-headed approach is a rare and special skill.
If Stuart Wheeler approached me for poker advice, I would tell him what I tell all aspiring players: the first rule is not to go skint. The second rule is to make a profit, however small. Those who are blinded by ego, interested only in vast wins and huge adrenaline rushes, end up trapped in the escalating debt scenario that currently threatens the entire western economy.

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