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Market crashes, much like forest fires, used to return things to a baseline. Now that we know how to prevent crashes - and forest fires - we risk creating an un
by flyinglizard 5y ago
Market crashes, much like forest fires, used to return things to a baseline. Now that we know how to prevent crashes - and forest fires - we risk creating an unhealthy environment which keeps growing until the inevitable catastrophe, where the underlying forces are beyond our means to control.
To the psychology of "the market always go up" we've now collectively added - through our interconnected hivemind - "buying the dip", and on the opposite end we have inflation coming after those who are more conservative, pushing them into taking uncomfortable risks.
- Eduard 5y ago>... Now that we know how to prevent crashes - and forest fires ... So we shall read your comment as irony?
- ehnto 5y agoThe analogy here is that we knew enough about forest fires to stop them from happening in a way that later on causes much worse catastrophic wildfires. The recent Californian and Australian wildfires were both worsened by previously putting out any and all fires and not letting burn-off of risk (brush/fuel) happen at a manageable scale. I don't know anything about the stock market, mind. But I get their analogy.