- Economics has postulated that humans are rational. Conservatives have extended this point into saying that if individual transactions are rational, markets must be efficient. Libertarians go on to say that efficient markets are a moral good and thus everything must be privatized. I find a problem with this chain of logic in that humans aren’t rational. Or perhaps, they are rational given what they know, and since no one is omnipotent, what is rational may in fact be irrational (either later on or to another person). If everyone were perfectly rational, there would never be regret. We also wouldn’t see the case of antibiotics being used without consideration of future consequences. Now that we have established that people are sometimes irrational, we can make the leap to enlightened regulation. The only point of debate is the extent.
- Markets are topsy-turvy right now. The Fed is printing money like crazy. Undoubtedly that will inflate asset bubbles. Haven’t they learned anything from Greenspan? Or maybe it’s all a big conspiracy. Oh my. Anyways, to stay safe in today’s conditions, it’s important to be diversified, to rebalance, and to monitor for potential bubbles.
- Insightful message of the day: ”The crackpot ideology of the economic right is libertarianism. Libertarianism and communism are equally crazy in opposite ways. Libertarians believe that it is possible to privatize everything without anarchy, while communists believe that it is possible to socialize everything without tyranny.”
With that said, I’m taking the time to rebalance my Google Reader list of feeds.