3 ms·
> Lots of companies are predicting a crash in the near future. Note that when a person/company/whatever believes this, they tend to take steps that improve tha
by margalabargala 4y ago
> Lots of companies are predicting a crash in the near future.
Note that when a person/company/whatever believes this, they tend to take steps that improve that entity's position, but slightly destabilizes the system as a whole. So if enough entities believe that a crash is coming, it can become a self-fulfilling prophecy.
- teeray 4y agoIs there a scenario where predicting a crash and taking action anticipating one can lead to a reduced crash or none at all?
- QuarterReptile 4y agoThe one where conservative investment and slower growth are part of the culture, maybe?
- deleted 4y ago[deleted]
- ianai 4y agoYes. It’d look like raising rates in 2016 slightly. But it’s not a certainty that would have been enough. There are lots of market concentrating powers at play leading to inefficiencies and waste.
- wolfram74 4y agoPandemics are like that, if the bulk of the community anticipates a pandemic threat, and takes steps to reduce their exposure/infection risk, it can change the environmental factors enough to make the pandemic fizzle out. It's one of those situations where if everybody's acting like its a big deal, it becomes a less big deal. Fire safety is another example.