4 ms·
Markets are reactionary and thus too slow.
by gvd 6y ago
Markets are reactionary and thus too slow.
- bumby 6y agoI think many would argue regulations are also reactionary (I.e., there were no laws to prohibit an action because it wasn’t anticipated until after it happened). Example: there were no laws preventing diluting stock during a hostile takeover until after Vanderbilt tried buying out the Erie Railroad and diluting stock was a way to swindle him [1] [1] https://en.m.wikipedia.org/wiki/Erie_War#Watered-down_stocks https://en.m.wikipedia.org/wiki/Erie_War#Watered-down_stocks
- dwaltrip 6y agoYou get this, but it is worth stating explicitly. They react to different types things. Both types are important, which is why we need markets as well as some amount of regulation.