16 April 2013

Short-term hearing loss resembles bursting of asset bubbles: No physical damage in either case

Temporary loss of hearing and reduction in asset value are both psychological mechanisms
George ILIEV

Reversible short-term hearing loss after a concert or a night in the club is not the result of damage to our hearing, groundbreaking research published in the Proceedings of the National Academy of Sciences shows. It is instead a protective psychological mechanism with which the body temporarily reduces hearing sensitivity in order to continue performing normally.

This resembles the bursting of asset bubbles. When a bubble starts to deflate, the underlying assets are not lost - be they houses, IT companies or railway lines. They are simply psychologically re-evaluated in a period of moderation which is needed for the economy to continue functioning normally.




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