Desperation distorts judgment. When the stakes feel unbearable and the path feels blocked, people become willing to believe almost any promise that offers relief.
That’s not stupidity; it’s pressure. The mind under stress seeks escape routes. It grabs narratives that soothe fear, especially when those narratives carry confidence, certainty, and a simple explanation for a complex problem.
In finance, that’s where scams, bubbles, and delusions thrive. Not only because some people are greedy, but because many people feel trapped. They want a rescue. They want a shortcut. They want someone to tell them there’s a guaranteed answer.
The defense is not perfect skepticism. The defense is reducing desperation: building buffers, avoiding fragile commitments, keeping room for error, and refusing the psychological hunger that makes miracles seem plausible.
When you don’t need a miracle, you stop being tempted by one.