Markets, especially financial markets, are not rational because most of the decisions made by the players within these markets are not based necessarily on rational behaviors… Irrational exuberance is part of the market functioning… If markets were the result of the pure reason, they would have been perfect and would have never failed… This is why markets need regulations to prevent them from irrational exuberance that often leads to the disaster… Now, the real challenge is about how to hold the Ultimate Judge rational when he can go bankruptcy… The debts of many states are simply unsustainable in the long run… America, Japan and many European countries cannot simply ignore the collapse of their entire systems if there is no solution for their debt… What happen to Greece will happen to them no matter the engineering set up to delay such collapse… What really does explain the irrational action that some Western players are promoting in the Congo, a country with trillions of dollars of assets, which the rebuilding, if appropriately conducted, may help to relief some of Western debt burden? In the end, markets are not alone to be in the myth… In the History, there are always few players who can really be identified in key mile stones of the Human Civilization as the catalyzers of the moments of either the apogees or the decline… For sure, some from the current generations will be hardly judged by the History as the disaster makers… The collapse may happen even before the cataclysms from the Environment destruction… When most of States will be unable to provide public services because of their debt burden, can anyone imagine the consequence? No market will be able to function in such chaos. This is exactly what happened with the collapse of the Roman Empire… It was not the consequence of any Natural disaster… The same patterns of despotism, of rapacity, of abuse of power… The same patterns, the same consequences… Nothing really new under the Majestic Sun… Keep going around! Good luck, Good Nightmare…
Posted on: Sat, 10 Aug 2013 15:02:22 +0000
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