Risk Concession

Another thing I wonder is why so many people are so incredibly bad at risk assessment?

I take risks but I always understand to the best of my abilities exactly what risk I am taking, what risks I am foisting on others, what the consequences will be if I fail, and what the benefits will be if the risk pays off.

Habits of an old trader, I guess.

But itโ€™s not even hard. If you donโ€™t concede to basic reality, of course, this will never help you. And most people seem to have very little connection to reality: half the people in this country donโ€™t believe masks work despite not understanding anything about them, think the Covid-19 pandemic is a hoax, believe in extensive election fraud and that seditionist insurrectionists were just some lost tourists taking an unscheduled tour of the Capitol in full battle rattle.

Itโ€™s impossible to assess risk if your reality has been Fox News-ed into dipshit-ville. So half the country is a lost cause.

But what about the rest? What explains their complete mispricing of risk even by their own measures? Writing a book called Risk and the Real World is probably pointless because you canโ€™t make people smarter, only angrier. Alas.