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Pastimes : Discussion Thread -- Ignore unavailable to you. Want to Upgrade?

To: c.hinton who wrote (1148)	7/17/2008 2:30:49 PM
From: TimF	Read Replies (1) \| Respond to of 3816

Its not that participants in the market are inherently wiser or smarter, or more emotionally stable than politicians or regulators. They are prone to over-exuberance and also too much pessimism, and a whole bunch of other faults. But while they at least have a decent check against those faults, and they (unless they can get the government to "protect" them or bail them out) typically face the cost of the poor decisions. Also the market conveys information, which is distorted or lost when you move away from market solutions, so even if the politician or regulator is wiser, smarter, more careful, and more stable than the trader, he wont' have a lot of the information he needs when market systems are severely distorted, or eliminated.