Study: Unless Wall Street Hires More People of Color, Nation Could See Another Financial Catastrophe
|
Posted By: Hija Chang on November 24, 2014 Posted by Taylor Gordon A new study suggests that the lack of diversity on Wall Street could land the entire country in more financial hot water by creating more dangerous financial bubbles. Financial bubbles tend to appear when traders overvalue their assets—stocks, bonds and other finances are assumed to be worth more than they actually are. When that bubble bursts, the results have the potential to create economic catastrophe. Prices drop exponentially, people lose unusually large amounts of money and the ensuing panic leaves a nation’s financial sanity hanging in the balance. It’s happened here before and t’ll happen here again—unless Wall Street increases its workforce beyond the sea of white males who currently predominate, according to a recent study conducted by six professors and published on Monday by the Proceedings of the National Academy. The Wall Street being dominated by white men means the group of homogenous traders are considered more likely to create a dangerous financial bubble than if people of diverse backgrounds came together to trade. A 2013 study revealed that more than 80 percent of all the managers on Wall Street are white and more than half are men, according to the Huffington Post. The study said it’s all about how comfortable people tend to be with one another and how much trust people put in others who remind them of themselves. “Traders in ethnically homogenous markets are significantly less accurate, and thus more likely to cause price bubbles,” the report said after revealing that “pricing accuracy is 58 percent higher in diverse markets.” Continued Reading: http://atlantablackstar.com/2014/11/20/wal... If you enjoyed this article, Join HBCU CONNECT today for similar content and opportunities via email! |
 |
Hija Chang
Management, See Moss Interactive Bellarmine University class of 2021 Member Since January 2011 |
Comments
More From This Author
Latest Career Content
 |
Launch Your Career with SinclairSinclair, Inc. (Nasdaq: SBGI) is a diversified multimedia company connecting audiences through local news, live sports, digital content, and premium entertainment brands nationwide.
From broadcasti ...more
luisa velasco • 1,629 Views • May 18th, 2026 |
 |
Sun River Health Is Hiring: Make a Difference in Communities That Need It MostFor professionals looking to build meaningful careers in healthcare, community impact, and patient advocacy, Sun River Health is expanding its team across multiple locations and specialties.
With a ...more
Reginald Culpepper • 665 Views • May 18th, 2026 |
 |
Monster.com 🧏🏼♂️ let's hear from Job experts about the path to career answers and insighTJeff Taylor founded Monster.com in 1994 and revolutionized how the world finds jobs. Now at 63, he's back to destroy what he created.
In this episode of Talent Take Five, Jeff shares why the recrui ...more
Hija Chang • 403 Views • May 15th, 2026 |
Popular Career Content
 |
PAID, federal internships with the Federal Diversity Internship Initiative!The Washington Center Federal Diversity Internship Initiative Now is your chance to apply for paid fall internships with the Federal Diversity Internship Initiative! This is your once-in-a-lifetime op ...more
Reginald Culpepper • 43,479 Views • June 14th, 2017 |
 |
Today's Success Tip: Joachim de Posada says, Don't eat the marshmallow...yetWe were invited to the National Association of African Americans in Human Resource's reception held at the
Atlanta Marriott Marquis during the SHRM conference, and the gift/tip we walked away with w ...more
Hija Chang • 41,895 Views • June 29th, 2012 |
