Economics

Complexity Economics

Mountain #2

THE GOVERNMENT MOST PROTECT THE CULTURE. iT IS THE CULTURE THAT DICTATES BEHAVIOR LET THE CULTURE DICTATE BEHAVIOR INSTEAD OF TRYING TO LEGISLATE EVERYTHING.wE ARE IN A PERIOD OF CONTRACTION AND CONSOLIDATING BEFORE WE CAN EVEN BEGIN TO THINK ABOUT THE NEXT WAVE OF PROSPERITY. iSN'T THAT WHAT THE MARKETS ARE TELLING US. tHIS WILL BE TAKING PLACE ON BOTH MAIN STREET AND WALL STREET AND TAKE SOME TIME TO CORRECT. iN THE END WE WILL BE STRONGER AND BETTER BUT THERE IS PAIN TO TAKE PEOPLE TO ROOT OUT ETC ETC AND A NEW BASE TO PUT IN PLACE. THIS AFFECTS EVERYONE AND EVERYTHING WE REALLY SCREWED UP GOOD THIS TIME.
AND EVERYONE IS NOW PART OF THE PROCESS. aS SOROS SAYS REFLEXIVITY IT WILL BE THE RESPONSE OF THE PARTICIPANT THAT DETERMINE THE OUTCOME THERE IS MNO SUCH THING AS EQUILIBRIUM. MARKETS ARE A REFLECTION OF THE PARTICIPANTS IN THEM. SOCIAL SCIENCES DEAL WIH HUMAN BEHAVIOR. tHIS IS NOT NEWTONIAN PHYSICS EQUALIBRIM, IS A MOVING TARGET.

The Times They are a'CHANGING

JOHN MACK - Morgan Stanley

Why it's Different

1-It's Global
2- CREDIT HAS DRIED UP
3- Leverage and the Nature of Fund management - the proliferation of hedge funds that use active and levered strategies has exacerbated the situation there was simply too much leverage and leverage works both ways we are now seeing the downside