Act Quote by Andrew Ross Sorkin
“Here's the perversity of Wall Street's psychology: The more Wall Street is convinced that Washington will act rationally and raise the debt ceiling, most likely at the 11th hour, the less pressure there will be on lawmakers to reach an agreement. That will make it more likely a deal isn't reached.”
About This Quote
Source Book: The Partnership: The Making of Goldman Sachs, 2010
Describes how overconfidence in political solutions can reduce urgency, paradoxically increasing risk of failure
In simple terms: Believing a problem will be solved soon can make people act less decisively
Key Takeaway
Recognize and counteract complacency in negotiations
Themes
economics
political psychology
risk management
Mood
cautious
analytical
Type
expository
critical
When to use this quote
- Legislative negotiations
- financial market reactions
- crisis planning
Key Concepts
Rational expectations
strategic delay
policy uncertainty
Questions to Reflect On
- What incentives could keep lawmakers motivated under pressure?
- How does market perception affect political decision‑making?
A Different Perspective
Assumes rational behavior, which may not hold in reality
