Saturday, April 21, 2007


Craig Newmark points to James Pethokoukis' thrashing of the naysayers. There are two things to be done: 1) beat them like a drum each time markets close at a new record high; and 2) profit from the idea that panics are just that and, therefore, wonderful buying opportunities.

There will be many more Feb 27-type crashes and they will sustain the bad news bears. I understand that evolution adapted us to regard interactions with people outside the family (or tribe or clan) to be zero-sum or worse. This is why the positive-sum world of Adam Smith is incomprehensible to so many. Call them naysayers.

The good new is that profits are best made if there are mistakes made by many others. The bad news is that some of these others are policy makers who have it within their reach to do serious damage. They then unwittingly validate their dim view of the world. That's the real reason for depression, economic as well as emotional.