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Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?

To: koan who wrote (138368)	12/2/2008 5:08:16 PM
From: E. Charters	Read Replies (1) \| Respond to of 312983

People co-operate to inflate and they co-operate to deflate. The market fever and hysteria, the gloom and doom is all a self-fulfilling prophesy of the market vultures and small traders alike. Obviously the pundits who say everybody should leave the market create the conditions where everybody should have left the market. As if there were some mythical persons who do not have to leave it and will buy everyone out. It is more herd hysteria than market dynamics due to some mysterious economic principle that no one seems to fathom. Forces that create the defaulting syndrome are built in to any market. It cannot produce more than there is money to buy the stuff. But every time there is a good market they overbuild as it is not regulated from on high who can produce.. Perhaps the communists are "right." (Managed markets are the only feasible market.) But the artificiality of these markets always leads to shortages, as no central authority can manage the such a large system. It is essentially self regulating due to its size and complexity. We see the same cycles in nature and particularly in the animal world with population fluctuations and food supplies. Han Selye studies the effects of increasing populations on the health of the systems and their individuals. Perhaps this model is an apt one for the market. It gets too busy, too populated, and then stress kills it. As it dies, everyone leaves in terror and this induces a faster death. After it all ends, the ape clan sits around scratches their heads and ponders the why and the wherefore. Now where did we go wrong?