fat white guy in the ninja suit…

i remember being in economics classes, while various professors, generally cadaverous-like, and filled with the unearthly glow of how ‘right’ economics is, rambled on in an almost unintelligible manner about how markets were the only efficient way of allocating scarce resources.

which, looking back, seems naive now, but those guys sure believed it, while teaching at their state-funded, decidely non-market universities.

but… they had a point of sorts. Markets do a reasonable job, in most cases, of allocating resources, through the ‘price goes up, more incentive to supply’ rationale. The mistake that is made is to assume that markets are not human institutions, but somehow transcend humanity.

Which, as we have seen, they don’t. Not even close. Theyre actually sub-humanity in most cases, accentuating the extremes of human behaviour. I mean… Obama looks like hes going to win right? So the markets shoot up. Then… Obama wins. Hardly unexpected. The market drops. Then, the euphoria of voting and post-election celebration/commiseration drinks wear off and the market drops 5%.

Wow. Thats efficient. If efficiency is another word for… stupid.

So there seems to be a massive body of economic knowledge that assumes…certain things. That, if not looked at too closely, more or less works. In the dark. Dressed in ninja-black. But turn the lights on… and all u get is a crazy fat white guy in a ninja suit trying to get his pot belly over a 3 foot wall. Thats market economics.

So… if you want to see the fat guy in the ninja suit wet himself, ask an economics advisor to use their vast knowledge to price in current volatility… it won’t make you any money, but it would sure be funny!

fat white guy in the ninja suit…

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