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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Perspective who wrote (239520)2/26/2010 1:55:03 PM
From: neolibRead Replies (2) of 306849
 
The thing that always strikes me in economic discussions is that the entire field does not make sufficient distinction between transient events and steadystate response. Its possible that there never is a steadystate response in economic systems. Instead, we always have time distortion, information distortion, and psych distortions having amplified effects, meanwhile economists talk about what should rationally happen long term. They are talking about the final response of a system where time (transients), misinformation and irrational behavior have all damped out, but we never have those conditions. Even when we correct previous issues, the current conditions can have similar distortions, just of opposite polarity. Its still not steadystate.
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