"Everybody is doing it" -- apparently, the phrase still carries immense social capital that informs decision-making.
NPR’s Talk of the Nation included a segment today entitled “The Science of Gullibility: Why We Get Duped.” (Click here to listen online.)
The program featured an interview with Stephen Greenspan, a psychologist and author of Annals of Gullibility: Why We Get Duped and How to Avoid It. (Check it out at Amazon.com)
And, Greenspan was one of the people who was duped by Bernard Madoff.
According to a brief piece in the London TimesOnline:
Stephen Greenspan is clinical Professor of Psychiatry at the University of
Colorado. He is one of the losers from Bernard Madoff, having seen a fair
chunk of his retirement savings disappear. He is also one of the world's
experts on financial scams and why investors get dragged into them, and the
recent author of Annals of Gullibility: Why We Get Duped and How to Avoid it.
The irony is not lost on the professor, who has published a scholarly analysis
of how he came to be duped in eSkeptic, the newsletter of the Skeptics
Society. The notion of gullibility has been largely ignored by social
scientists, he writes. There are four aspects: situation, cognition,
personality and emotion.
The Madoff scam involved “social feedback measures”, which meant that, as so
many prominent people were investing, it was hard to believe they were all
wrong. In terms of cognition, he admits he knows little about finance and
was too lazy to find out. Greenspan says he has a trusting personality and
does not like to say no to a sales person who has given him an hour or two
of his time.
Emotionally, he was not greedy but merely wanted a safe return for his
retirement. “A host of factors, situational, cognitive, personality and
emotional came together to cause me to put my critical faculties on the
shelf,” he admits.
Basically, it sounds like it could have happened to anyone -- certainly if the people involved are bright, successful, and widely known, how could you be wrong to jump on the same train?
I offer a religious angle on this story here.
-Colin Foote Burch