Tags: Obama | Iraq | president | emotion

Obama's Policies Show the Danger of Allowing Emotion to Interfere With Logic

By    |   Wednesday, 13 Aug 2014 08:16 AM

New York Times columnist Thomas Friedman recently wrote about an interview he completed with President Obama. The president noted that "we did not just start taking a bunch of airstrikes all across Iraq as soon as ISIL [the Islamic State in Iraq and the Levant] came in was because that would have taken the pressure off of [Prime Minister Nuri Kamal] al-Maliki."

I hope this misquotes the president.

ISIL, more commonly called ISIS, has executed hundreds of innocent victims and destroyed historic treasures such as the tomb of Jonah, an important site for Christians and Jews. It is difficult to believe the president allowed this to happen in order to teach the Iraqi Prime Minister a lesson about the importance of cooperation. Unfortunately it appears a desire to impose his desires on Iraqi politicians did factor into the president's decisions.

Eventually, the situation in Iraq became so dire that Obama was forced to act against ISIS.

This tragic series of events offers valuable lessons to investors.

Actions need to be taken based on the reality of the situation, not the situation we wish existed. If a stock starts to fall, we might wish the decline would stop, but that does not change the facts. An investment in a stock that is falling is a loss, and the investor needs to address the loss.

Emotional reactions only make losses worse. This can have tragic consequences when politicians follow that course of action. It can have adverse financial consequences when investors allow emotion to interfere with their decisions.

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MichaelCarr
New York Times columnist Thomas Friedman wrote about an interview he had with President Obama where the president noted that "we did not just start taking a bunch of airstrikes all across Iraq as soon as ISIL came in was because that would have taken the pressure off of [Prime Minister] al-Maliki."
Obama, Iraq, president, emotion
256
2014-16-13
Wednesday, 13 Aug 2014 08:16 AM
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