Tuesday, June 24, 2008

They walk among us

Price adjustments are essential and the key to market magic. That's what we teach. We probably do not spend enough time teaching that all hell breaks loose when prices adjust and that politicians (and many others) say (and often do) the dumbest things.

Both presidential candidates have figured out that "the speculators" are to blame -- and that its high time to do something about them. This is what the crackpots (Chavez, Mugabe, etc.) have been saying all along.

All humans with a pulse plan beyond today and are, therefore, speculators. Those who do more of this than others are specialists who will be shown to have guessed wrong (in which case they suffer the consequences) or they end up being right and benefit the bystanders with their prescience. Information sharing improves every else's planning.

This stuff is apparently not taught in most law or journalism (or countless other) schools.