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This is an interesting study of markets. I fear that those who propose that markets are the solution are ignoring these cases where a large enough mover can ma
by ryanobjc 13y ago
This is an interesting study of markets. I fear that those who propose that markets are the solution are ignoring these cases where a large enough mover can manipulate the entire market.
After all, for commodities, it is in the best interest of nearly everyone for the prices to be as low as possible, but still enough so that the manufacturers can still find it valuable to do so. Traditionally, markets existed so that farmers could get assurances of prices for goods. How does that ideal translate to what is happening here?
Markets are a good way to decouple and avoid command economies, but problems like this need to be taken seriously and addressed. Ideally by alignment of incentives vs regulation, but hey, if it's christmas I also want a pony...
- kaonashi 13y ago> Ideally by alignment of incentives vs regulation Glass-Steagal seems to have been a regulation that altered the alignment of incentives (separating lending & investment institutions; so they no longer have incentive to create bad loans so they can bet against them).