A recent study from the University of Cambridge illuminates a disturbing lack of diversity among those responsible for the world’s financial markets.
Fact: Financial markets around the world are a reflection of the decisions of human beings.
Fact: The vast majority of these particular human beings are traders.
Fact: The vast majority of traders are young men.
Fact: Young men have high levels of testosterone.
Fact: Testosterone is the chemical responsible for irrational exuberance.
Fact: Irrational exuberance leads to bubbles.
Fact: Bubbles are bad.
Fact: Men typically produce ten times more testosterone than women.
John Coates, senior research fellow in neuroscience and finance and author of the study, explained the situation to Bloomberg: “On Wall Street, we have one slice of the population—young men—running our trading floors,” said the former derivatives trader. “That leads to extreme behavior: They go wilding.”
If there was ever a case for gender-based affirmative action, surely this is it.