On Sat, 27 Apr 2002 [EMAIL PROTECTED] wrote:
> No.
Maybe.
> People who think like economists or libertarians will conclude
> that markets tend to stability, because humans will analyze
> fluctuations,
The examples of stable free markets include lots of examples that are not
involved with humans, ants for example. Or the way pigeons divide up the
seed in a given area so that each gets apportioned to their pecking order.
> attempt to predict them, and then take precautionary
> action to protect themselves, which will have the affect of
> smoothing the fluctuation, unless prevented by forceful state
> action as in the 1930s.
Actually you can't control the market, to try kills the market.
> Those who think like ecologists or totalitarians will conclude
> markets are unstable, because they think that humans lack the
> wisdom to anticipate the future.
Actually the only time a market is stable is when the participants -don't-
analyze the market as a whole, in fact may be completely ignorant of the
existance of a 'market' for that matter. The instant 'control' gets
applied the market will break down. All the examples, mathematical and
biological, that demonstrate market stability are examples where the
agents are following a simple set of rules and this doesn't include global
market state info.
The reality is that both free and control markets fall down. It isn't a
matter of people or not. It's a matter of the 3 laws of thermodynamics.
You can't satisfy all the market agents all the time. Some time, just
because, all the air in the room does rush to one corner.
--
____________________________________________________________________
The law is applied philosophy and a philosphical system is
only as valid as its first principles.
James Patrick Kelly - "Wildlife"
[EMAIL PROTECTED] www.ssz.com
[EMAIL PROTECTED] www.open-forge.org
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