This is a very interesting story. It supports my current belief structure, so it must be correct! We are irrational, not only in “markets” but in votes, in life choices, in everything. Humans are fundamentally irrational beings.
Yet another reason we should never be in charge of anything!
“I once told a story about this: We once traveled from New York to Boston on a Sunday night, and we saw a car on fire on the side of the road. A week later, again on a Sunday night, we were traveling and again saw a car on fire in the same place. The fact is, we were less surprised the second time than the first because we had learned a rule: Cars burn at this spot.
“We find this everywhere – the speed at which people create rules, norms and expectations, even when they know it’s ridiculous. This is the intuitive method at work. It remains true that whenever I travel, I always look for burning cars at that spot.”