Keith wrote:
> Steve is quite right. In strictly monetary terms the whole market is a
> zero-sum game

But Steve's claim was that only the closed circuit of voluntary gamblers
is a zero-sum game -- not the whole market/globe, which is full of INvoluntary
participants/losers (=everyone who uses the de-valued currencies, pension
funds etc. and everyone who eats the food that got more expensive by
speculations).


> If, at the time of
> Lehman's collapse, the whole economic world could have been placed in a
> state of suspended animation while all the paperwork was followed through
> (which would take several years!) then half the financiers would have
> become rich and half would have lost their shirts. But it would also be the
> case that half the governments of countries would have survived and half
> would have collapsed into bankruptcy. It would also be the case that half
> the businesses would have collapsed and half of workers' pension funds
> would have been empty also.

Using the word "half" every time shows a poor understanding of statistics.
Due to the strong INequality in size (wealth) of the market participants,
the median is very much below the average, so it is NOT "half", but a tiny
"elite" of winners (billionaires) stands against a vast majority of losers.
It's almost like in the lottery, where ONE of Keith's fellow Brits reaped
100 Million Euros last Friday, paid by MILLIONS of losers with 2 Euros each.
But Keith would say that "HALF the lotto players won and HALF lost"!

With such a poor understanding of statistics/maths, of course it's easy to
fall for the stone-age PR spread by the billionaires.  It has nothing to do
with philanthropy, but everything with self-serving greed.

To understand the difference between median and average, explained in
cavemen's terms, read
http://www.darwinsfinance.com/median-mean-definition/

Chris




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