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Strategies & Market Trends : Galapagos Islands -- Ignore unavailable to you. Want to Upgrade?

To: Petrol who wrote (8067)	10/19/2002 1:33:26 AM
From: Jorj X Mckie	Read Replies (1) \| Respond to of 57110

sure, government intervention, fed intervention, PPT, whatever....I believe in letting the free market fix itself. And I think that when you muck around with it, the unintended consequences can be dramatic. And the reactions to those unintended consequences further amplify the systemic maladies. Gets into that oversteering in a skid syndrome. An example of this is the gov't mandating a limit on executive salaries. Well, once that was done, corporations needed a way to attract the best and the brightest. Et Voila' stock options grants become outrageous. Thus diluting shareholder equity. And then it is found that there are tremendous tax benefits by providing compensation through stock options, so even more are granted and corporations are offsetting so many taxes that they are actually making more in tax benefits than they are from operations...etc. etc. etc..... Right now I am thinking of Jurassic Park (the book) where there is a very clear description of chaos theory to systems. And how one disruption to the system can cause a complete systemic breakdown. Once the mania was set in motion, more and more intervention had to be asserted to keep the system from breaking down, until finally a butterfly flapped its wings in china and screwed everything up.