Tuesday, January 13, 2009

With a wave of his (very long) finger...

...the trader made lots of money.

Apparently, according to a new study in PNAS, the size of men's fingers might be to blame for the financial crisis (sort of). The study found that there was a direct correlation between the relative size of a male trader's ring finger and how much money he made in the market. Specifically, the research measured the ratio between index finger length and ring finger length, so that a low ratio means you have a relatively long ring finger.

Even cooler is that there is a potential mechanism for explaining this relationship. Previously, it's been shown that having a low index:ring ratio (and therefore a long ring finger) means that a man will be more sensitive to changes in testosterone levels. This means quicker reactions and more willingness to take aggressive risks, which are also apparently useful in trading. I wonder if a hand print will now become part of the application for i-banking.

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