Irrational consumer spending

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With the recent disastrous earthquake in Japan and the problems the nuclear facilities are facing there, you’d have to be living under a rock to not notice all the talk of nuclear radiation dangers. Some reports are saying that very low levels of airborne radiation were detected about 200 miles to the north of the Fukushima nuclear power plant.

Now it appears that it is having an effect on the behavior of people here in the United States. Potassium iodide pills, commonly used to treat low-level radiation exposure,  are reportedly flying off the shelves in several west coast states.

This is despite many assurances from reputable sources that Americans are not in danger of radiation exposure.

One site featured in the news report is completely sold out of product.

I’m sure the Potassium Iodide manufacturers are loving it. Same for the Ebay sellers.

This should be used as another example of the unpredictability of the market. Despite all of the facts and reasoning behind events across the pacific ocean, many people will still act on their emotions and fears.

Now if only irrational behavior could be more predictable…

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