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by miscellaneous
3947 days ago
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> A market is a system which can have temporary flaws I guess this is where our assumptions diverge. I don't believe that a fluctuation in the market price can ever be considered a "flaw". Some people buy stocks and some people short stocks - a price increase is no better or worse than a price decrease. A market fluctuation is merely representative of a change in the opinion of the participants of a market. Market volatility merely demonstrates that there is a high degree of uncertainty amongst participants. Hence, I don't believe there is any utility in trying to impede market fluctuations since this does nothing to change the root cause: the participants of the market haven't achieved a strong consensus. |
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You may not have intended to, but you just asserted, among other things, that that system is perfect.
Please re-read my statement in this light, and try to see if you can find a way to agree with me:
"A market is a system which can have temporary flaws."
Okay, now that you're probably agreeing with me, but concluding that I'm being pedantic... Let me try to bring you back...
If the system itself causes a flaw, which affects prices.
So, if I want to relate to you, an IDEAL market behaves the way you're describing. Maybe no regulators needed.
An ACTUAL market behaves the way I'm describing. Regulators needed.
Once you agree with that, at least, maybe we can debate how BIG of an impact practical considerations have, and how large of a role regulators should have.