May believes that the problem isn’t necessarily the mechanics of the market itself. It’s the way small things in the market are amplified and perverted by the way humans interact with them. For him the most worrying thing about the banking mess is getting a better handle on this contagious spreading of worry. ‘The challenge is: how do you put human behaviour into the model? I don’t think human psychology is mathematizable. Here we are throwing dice with our future. But if you’re trying to predict the throw of the dice then you want to know the circumstance of who owns the dice.’
Psychology
