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View Diary: Morning Feature: Animal Spirits, Part II - Recession, Banking, Unemployment, Inflation (94 comments)

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  •  Classical and neoclassical economics ... (3+ / 0-)
    Recommended by:
    Orinoco, winterbanyan, FarWestGirl

    ... don't ignore greed.  Quite to the contrary, they assume it's inevitable and socially beneficial.  But their assumptions about its benefits are premised on everyone being equally rational (greed-driven), and everyone having equal access to all relevant facts (so deception is impossible).  Classical and neoclassical economists would say the problem isn't that the wealthy are greedy, but that the rest of us aren't greedy (rational) enough, and that the markets were broken not by greed but by deception.

    •  lol I can agree about the deception. *sigh*, (2+ / 0-)
      Recommended by:
      winterbanyan, NCrissieB

      I guess I should have stuck it out and slogged through the basics, at least. I still think they ignore blatantly obvious things, but I can see where they wouldn't have been able to quantify them without our modern social and neurosciences.
      There's got to be some algorithm describing the drift of 'open' markets to occulted markets as people game the system and set themselves up with insider info and access. Now that would be a useful application, being able to describe and predict the expected decline into corruption. God knows we have enough data from the boom and bust iterations that someone should be able to map it out.

      Information is abundant, wisdom is scarce. The Druid

      by FarWestGirl on Thu Jul 09, 2009 at 08:55:04 AM PDT

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