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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: carranza2 who wrote (20849)	6/15/2009 11:31:10 PM
From: axial	Respond to of 71456

Great article, C2. Thanks. "By relying so heavily on the view of humans as rational, the paper's authors argue, economists ignore evidence of irrational behavior that is well documented in other disciplines like psychology and sociology. Even if an individual does act rationally, economists are wrong to assume that large groups of people will react to given conditions as an individual would, because they often do not. "Economic modeling has to be compatible with insights from other branches of science on human behavior," they write. "It is highly problematic to insist on a specific view of humans in economic settings that is irreconcilable with evidence." Ah, yes. The Myth of the Perfect Practitioner... "The 'system" such as it is, is pervaded with what I call The Myth of the Perfect Practitioner: the idea that players are cognizant of transactions passing through their sphere, aware of the implications in every way, and responsibly dealing with them." Message 24665654 Jim

To: carranza2 who wrote (20849)	6/16/2009 8:18:41 PM
From: Real Man	Read Replies (1) \| Respond to of 71456

Here is the "PPT" - a bunch of druids doing the same thing. When they run low on digital money, the market crashes. -g- "When certain price and risk models came into widespread use, they led many players to place the same kinds of bets, the authors continue. The market thus lost the benefit of having many participants, since there was no longer a variety of views offsetting one another. The same effect, the authors say, occurs if one player becomes dominant in one aspect of the market."