unclej0

Wall Street Breakfast: Must-Know News

The price of stability, as in any dynamical system, is properly designed control. Unfortunately, human beings have not yet learned to stabilize economic activity A large part of the problem is ideological. The nearly religious belief in the "invisible hand" of the market bears no relation to reality; it holds only for idealized models.

Human behavior does not exclude irrationality and cheating. Where, in the idealized model do we find monopoly, cartels, insider trading, deception, excesses of greed and fear, externalizing costs through pollution, conditions near slavery in many parts of the global labor market, etc.

Government intervention can reduce the worst offenses but governments are considerably influenced by the worst offenders. We have a lot to learn.


On Jan 02 10:01 AM JasonR wrote:

> "Investors, meanwhile, are hoping 2009 brings a turnaround, but aren't
> counting on one."
>
> Sure glad we have the Wall Street Journal to tell us investors what
> we want. Buffett seems to be the only voice of sanity in a sea full
> of weasels whining for a bailout. I, for one, don't care how the
> market performs in 2009. I am much more concerned about my government's
> intervention in the automobile, housing, banking, steel, healthcare,
> and whatever other industry I didn't think of. If all the cries for
> a bailout were dismissed at the beginning, by now we would be halfway
> out of the storm and looking forward to a full-fledged recovery.
> Americans apparently prefer stability, but stability comes at a price.
> Nothing is free.