This is a post about something that cropped up in conversation with someone who's an investing pro.
This is what she said:
‘ Who the fuck thinks that ‘skin in the game’ gives them more fucking clarity ? Lolol…’
If logic was a sport, fallacies would be the fouls or errors.
Fallacies violate the rules of logical thought, but often seem plausible or even convincing.
Emotions can blind you to logic, thus creating fallacies - ones that are aided by natural human defense response mechanisms (fear).
This was a tiny part of a much wider discussion concerning hive and the ecosystem.(full post here)....
@lucylin/it-s-mind-trap-mid-wit-and-you-ve-been-caught-lets-meander
(I'd intended to tag @leofinance on this post, because it's very relevant ... But I didn't...Oh well.)
Back to the specific point of this post...
By having 'skin in the game'- for some bizarre reason - seems to invoke ,or infer , some kind of extra legitimacy to a stated position.
This is both intellectually absurd, and philosophically weak.
Let me explain.
In the picture below, both people involved have 'skin in the game'.
If you asked gladiator blue, 'who wins this trade ?', and if you then ask gladiator red the same question, the answers would must most probably be very different.
The very fact that they have skin in the game doesn't add to their accuracy of predicting the outcome.
-having skin in the game only distorts each of their perceptions.
Emotions can distort reality.
The more you have to win (or lose), the more your brain will rationalize your decisions.
RATIONALIZE:
a. To attempt to justify (one's behavior) by providing reasons that obscure one's actual motives.
b. To dismiss or minimize the significance of (something) by means of an explanation or excuse.
It's a psychological defense mechanism.
It can distort reality.
Now, if you were to ask an uninvested observer about the clash of the two gladiators, you'd get a far more objective opinion on the probable result.
Be careful who you listen to....enthusiasm is emotion, not reality.
Enthusiasm is highly correlated to the desire of an outcome.
It has no correlation to the actual outcome.
Having 'skin in the game' is highly correlated to wanting a desired outcome...
