CB -
...I think the "bigger the boom bigger the bust" stuff is silly. It's based on the belief that things move in cycles. ...
To be consistent, you would also have to believe that the height achieved by an ascending swing after passing through the vertical has no relation to how much it was initially displaced before being released earlier on the other side.
Or that if you spend two months' salary into debt, it won't take longer to recover than if you had spent only a single month's salary into debt.
When almost any system is displaced from equilibrium, as in the case of a pendulum, for example, restoring forces are created whose magnitudes vary with the degree of displacement, although not to any particular formula. When the restoring forces are allowed to act the result is either a degree of overshoot which tracks the degree of initial displacement, or, in the case of no overshoot, more heat generated by friction for higher degrees of displacement.
Regards, Don |
