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bampbs | The Economist
tags: Economics
- Wouldn’t it be lovely if experience could triumph over the cycle of euphoria and terror in their turns ? But our knowledge of the future is so fundamentally uncertain that financial markets will never cease their overreactions. It would be good if speculation with borrowed money were prohibited. It would be better if everyone recognized that movements in asset prices beyond those justified by reality are just another manifestation of inflation or deflation, and just as problematical as any other. For this reason, strongly counter-cyclical regulation is best; stability ought to be the regulators overriding goal. Finance has no independent value whatsoever. It is time it was put back in its place.
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