Why do people insist on walking their dog next to a busy street without a lead?  There is no perceived upside and yet there is unlimited downside for the dog.  The reason is the desire to be part of an exclusive "inner club" only recognised by "those in the know".  This dynamic is well-known in finance, dubbed Little Pig Big Pig.  The consequences of this dynamic explain why financial impropriety happens so frequently

After four weeks of lockdown where we are all cocooned in our abodes, why is there a marked increase in car traffic.  The transition from complacency to panic has been profound on the psychology of groups, but also as we look forward will upgrade what our perceptions of risk.  

Welcome to this new podcast.  In this introduction we ask questions about why do individuals or whole groups identify risks and respond by either over-reacting or taking unnecessary risk.  We introduce the idea that in finance, the toxic mix of circumstances make it a good breading ground to understand why people are so bad at understanding risk and that the lessons we learn can be applied to macro as well as individual events.