Are You Gullible?

Are you gullible? I think most of us are, at least in some areas of our lives. A man named Stephen Greenspan has written a book entitled The Annals of Gullibility. Greenspan is a college professor. Guess what? He was one of the investors in Madoff-run funds!

In a lengthy article in the Saturday, January 3 Wall Street Journal, Greenspan tells us about his own gullibility, and lists some of the main features of the gullibilty we all experience from time-to-time.

First, there is the situation. "Every gullible act occurs when an individual is presented with a social challenge that he has to solve." Greenspan was hearing positive word-of-mouth testimonials from extended family and friends about the slow, steady income they were receiving in good times and bad, from investing in Madoff funds. Greenspan convinced himself that it would be foolish not to take advantage of such good fortune!

Second, there are deficiencies in knowledge and/or clear thinking. He had a profound ignorance of finance, coupled with a "lazy unwillingness to remedy that ignorance."

Third, know when to be trusting, and when not to be. This is a hard one for most of us. Are you a person who does not like to say no? Are you a risk-taker? Are you sometimes impulsive in decision-making? How emotional are you? Do you get excited at the prospects of something that you think is going to happen in the future?

Fourth, is the importance of healthy skepticism. Never throw all caution to the wind. At least Greenspan had the smarts to invest "only" 30% of his retirement fund with Madoff. Always realize, "The one who you think might be the Messiah might actually be Satan!"

One final thought from Greenspan: "Our survival depends on being able to recognize, analyze and escape from highly dangerous situations."

And friends, please remember, the Messiah has already come. His name is Jesus!