Artist : Richard Decker Publication: The New Yorker 11 Jul 1936
Monday, March 12, 2007
Asian Flu or American Plague
Global financial markets are integrated। When one part of it catches virus, another part starts sneezing.
Also, it is not simply demand-supply economics at work.
For example, price of oil rises because it is favourite commodity of speculators and hedge funds and not because some great fundamental forces are at play.
Another prevailing thing among business media is the pervasive and insidious habit of anthropomorphic thought. "markets will go where they want to go"!
Edsger W. Dijkstra: "Is anthropomorphic thinking bad? Well, it is certainly no good in the sense that it does not help. Why did the stone fall in Greek antiquity? Quite simply because it wanted to go to the centre of the earth. And, several centuries later, we had the burning question: why do stones want to go to the centre of the earth? Well, that is simple too: because that's where they belong. Why are heavier stones heavier than lighter stones? Because they are more eager to be at the centre of the earth. But then Galileo made the troubling discovery that the heavier stone does not fall any faster than the lighter one. How come? Simple, dear Watson: the heavier stone has indeed a greater desire to be at the centre of the earth, but it is also more lazy. So much for a - be it somewhat simplified - history of the development of physics."
Artist : Richard Cline Publication: The New Yorker 25 Apr 1994
Also, it is not simply demand-supply economics at work.
For example, price of oil rises because it is favourite commodity of speculators and hedge funds and not because some great fundamental forces are at play.
Another prevailing thing among business media is the pervasive and insidious habit of anthropomorphic thought. "markets will go where they want to go"!
Edsger W. Dijkstra: "Is anthropomorphic thinking bad? Well, it is certainly no good in the sense that it does not help. Why did the stone fall in Greek antiquity? Quite simply because it wanted to go to the centre of the earth. And, several centuries later, we had the burning question: why do stones want to go to the centre of the earth? Well, that is simple too: because that's where they belong. Why are heavier stones heavier than lighter stones? Because they are more eager to be at the centre of the earth. But then Galileo made the troubling discovery that the heavier stone does not fall any faster than the lighter one. How come? Simple, dear Watson: the heavier stone has indeed a greater desire to be at the centre of the earth, but it is also more lazy. So much for a - be it somewhat simplified - history of the development of physics."
Artist : Richard Cline Publication: The New Yorker 25 Apr 1994