Wednesday, March 31, 2010
Being a Storyteller
In a recent interview for McKinsey Quartely Nobel Laureate Daniel Kahneman makes a brilliant point: "Overconfidence is a powerful source of illusions, primarily determined by the quality and coherence of the story that you can construct, not by its validity." We've heard it a million times: The data doesn't lie. But it really matters who is constructing the data and why. Wall Street created well-constructed illusions with its string of alphabet soup derivatives. Now, I better understand what my mother meant when after being caught in a lie she would say, "don't tell stories." It's just that the stories Wall Street tell are detrimental to us and other countries all around the world.