Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?

To: RMF who wrote (31239)	1/9/2009 12:29:16 AM
From: DuckTapeSunroof	Respond to of 71588

Re: Everything has been dysfunctional since Lehman went down. Buddy, I'm trying to figure out what's "functional". Got any hints? I'd hesitate to label any condition that doesn't come around very often as "normal". But, I believe that financial panics and crashes, (& market bubbles and busts), have happened with some regularity throughout the entire modern history of Capitalism (not to suggest that any other "ism" wouldn't experience shocks to the system as well. Sure they would). But... just because something only happens once or twice in a normal human's lifespan doesn't mean it's "abnormal", just that it comes around usually only after a fairly long period of time. That can still be perfectly "normal" (unfortunately). Bubbles and their 'after-popping' aftermaths... financial panics and crashes... one of the best looks at such is an 'oldie but a goodie': *Popular Delusions and the Madness of Crowds. IMO, still the best in the field! (But Taleb's stuff about "black swans" is a worthwhile addition.) Maybe stuff like this normally only happens 'once or so' in a person's life because that is the limit of human memory? Once burned, you are unlikely to make the exact same mistakes again... but, the next generation* comes along, and they have to learn all the hard lessons anew. "There is no free lunch" remains as true today as it was whenever it was first said. ;-)