On Jan 19, 2007, at 5:56 PM, Ted Winslow wrote:
> This understanding of capitalist motivation as irrational underpins
> his analysis of behaviour in financial markets, in particular it
> underpins his analysis of the "conventional" basis of expectations
> in those markets, the most important "convention" being the one
> pointed to by Doug. Keynes claims that:
>
> "The vast majority of those who are concerned with the buying and
> selling of securities know almost nothing whatever about what they
> are doing. They do not possess even the rudiments of what is
> required for a valid judgment, and are the prey of hopes and fears
> easily aroused by transient events and as easily dispelled. This is
> one of the odd characteristics of the capitalist system under which
> we live, which, when we are dealing with the real world, is not to
> be overlooked." (vol. VI, p. 323)
And the odd thing about this is that anyone who follows the financial markets closely knows that this is mostly true. Only hack economists and Alan Greenspan (sorry, redundant) would argue otherwise.
Doug