3 ms·
It's a good thing for markets to reward information-gathering. Truth is a valuable commodity for the public. For every current investor who will lose money when
by solatic 7y ago
It's a good thing for markets to reward information-gathering. Truth is a valuable commodity for the public. For every current investor who will lose money when the truth is revealed, there are many more prospective investors who will be protected from investing in a losing proposition.
The alternative is a Soviet-style disconnection from reality. A market planner in a far-away office planned for a farm to produce some amount of output, so, that's how much the farm officially put out, nevermind that there was a drought and part of the output was diverted to the black market etc. But how is the planner supposed to know? Without feedback, without the truth, it becomes impossible to come up with accurate numbers for anything. Without the truth, the economy is a house of cards.