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Capitalism seems to "thrive" on instabilities. Libertarians just do not accept any damping measures. They hail GDP growth as the holy grail. As for crisises - well, they are swift but rare and short.

In particular, experienced stock traders are surely aware of Ponzi modes in one way or other. Taking benefit from that must be a usual buisiness for them. Predicting moods of new market players is even an easier task than estimating "intrinsic" value of companies. (This is akin to the job of bookmakers: they do not really predict sport events; they just have to predict moods of participating betters. If they force bets to be distributed evenly, bookmakers win their daily bread with any outcome of the sport event.)

by das monde on Tue Mar 20th, 2007 at 08:57:17 PM EST
[ Parent ]
Bookmakers don't need to force bets to be distributed evenly: they just need to continually adjust the odds to respond to the changing mood of the bettors.

"It's the statue, man, The Statue."
by Migeru (migeru at eurotrib dot com) on Wed Mar 21st, 2007 at 02:25:18 AM EST
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