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>>These are just facts It's no such thing. It's quackery rejected by experts.
by CryptoPunk 6y ago
>>These are just facts
It's no such thing. It's quackery rejected by experts.
- sgt101 6y agoYou can see it; under stress markets fail to clear because the actors stop acting rationally. This leaves market participants holding assets that in theory they should have been able to offload. This is because free market theory depends on rational actors working without friction and with perfect information. In reality the actors are irrational, the process has friction and information is horded and distributed unequally with noise.
- CryptoPunk 6y agoRational actors make money from the irrational behavior of others, leading to the most rational acquiring more capital at the expense of the less rational over time, and therefore capital in general being governed more rationally. To put it another way, the market rewards economically beneficial behavior, like shorting bubbles and investing during depressions. That markets reduce market volatility is a widely accepted conclusion of economists.