Tuesday, September 23, 2008

Miracles is the nature of market by Chandra

Rajrishi Singhal writes “Markets have also evolved from their original mission of being essentially an efficient and cheap mechanism for firm-level capital allocation”.

And further

“Here’s what David Strom, president of Minnesota Free Market Institute, wrote in a recent article: “Businesses often make huge mistakes, and we have known for centuries that markets are constantly fluctuating, even wildly... Markets, though, correct... Markets work well — not perfectly, but well — because they are not engineered from the top-down. They are chaotic. They encourage experimentation. They allow mistakes. In markets, even the mighty can fall. Not so in regulated markets.” 

“there is always someone who has more information than the others”. This is what years ago liberal economist and Nobel Prize winner F A Hayek said in his fames essay on "The use of Knowledge in Society" published in 1945.

 

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