jump to navigation

Don’t let ‘Climategate’ melt down your portfolio December 5, 2009

Posted by honestclimate in Discussions.
Tags: , ,
trackback

Don’t let ‘Climategate’ melt down your portfolio

By Avner Mandelman
The Globe and Mail, December 4, 2009

I’ve said before that you are more vulnerable to skillful rhetoric than you think. Well, the past week proved it.

You’ve probably read about “Climategate” – how thousands of hacked e-mails from climate scientists revealed that they colluded to fudge their conclusions about global warming, told each other to destroy incriminating e-mails and perhaps even dumped raw data to mask the fraud.

Why did it work? Because the falsified conclusions appealed to people’s good nature, and because the conspirators co-opted above-average rhetoricians to deliver their message.

Now why am I going on about this? For two reasons: First, because global warming is an investment theme that a few brokers are pushing; so, if you are a theme investor, be careful. Second, this sort of revelation is a perfect teaching moment of the madness of crowds.

Similar irrational manias included global cooling in the 1970s (when investors were urged to invest in thermal insulation, and the like); the Club of Rome’s fear that we’re running out of resources; the Internet dot-com bubble, when insane stock prices for companies without revenues were the norm; and others of the same ilk: mass hysterias that allowed a few media-savvy promoters to take the money of the many, by preying on their credulity, their emotions or both. Like global warming now.

If you think that calling global warming an irrational mania is a bit harsh, consider this: Say that a pharmaceutical company’s researchers were caught fudging their tests to make their drug look effective; then, when found out, conveniently lost the non-fudged data. If a doctor prescribed for your child the fraudsters’ drug, would you let her take it? If you said yes, would we not be justified in saying you are acting irrationally?

Read the rest here

Comments»

1. Paul Pierett - December 6, 2009

I agree with the comments of the author and add that an important part of the public has bought in to this and have no research or background to back this up. They will become part of our future leadership.

This is dangerous for we are really facing a very unpredictable cold period ahead. If our leadership is facing in the direction of Copenhagen, very unfortunate consequences lie in store for the overall population that depends on such leadership.

Paul Pierett


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: