To what extent can the market’s failure be blamed on cocaine?
According to this alarming news report, there was a clear link between the heady trading during the boom and snorting. And professionals in the detox business in London say they’ve been flooded with calls since the financial crisis blew up a year ago.
As the report notes: “Scientists say it’s no accident that trading and cocaine sometimes go together. Both involve taking risks and have a similar effect on the brain. Each activity raises dopamine levels, the organ’s feel-good chemical, according to Trevor Robbins, professor of cognitive neuroscience at the University of Cambridge. Dopamine surges when we take risks, such as going sky diving, betting on stock price movements or hiding in an office rest room and snorting a line of coke. Studies show that people who take risks have low levels of dopamine receptors and try to shock the brain into a boost of the chemical through novel situations. They’re also more likely to become addicted, Robbins says.”
A lot of it too has been driven buy the drop in the price of coke in recent years. It’s now a lot cheaper than it was a few years ago.
So to what extent was the meltdown fueled by coke abuse? It’s something we will never know for sure, but it’s worth keeping in mind. Next time markets are booming and share prices skyrocketing, it’s a warning that other forces might be at work.
We really don’t need that now and frankly I never thought I would ever read an article with this title. Apparently people of all kinds are more vulnerable to drugs than we would ever expect.