Wednesday, September 16, 2009

Study of Obese Economics

I will leave this Post from Tim Haab for Those who are masochistically inclined, though I will confidently state that I know relatively nothing about such things through deliberate design. I will comment that Marginal Benefits cannot equal Marginal Costs at any given Point, due to a combination of the value of Money itself (the Inflation thing) and lack of perfect Information on the part of the Producer. Review of the other Equations induces the speculation that one of the defects of economic knowledge may be the placement of Value within economic equations. I could also give honorable mention to a Statement claiming a real lack of desire for equilibrium in the presence of an externality–One has to ask what is the exact composite of a Operational Cost. I had one Instructor claim that economics was a science trying to bring Order from Chaos; I know it is Chaos trying to define itself.

I will present this list for Those who seem destined to learn about the fortunes of bubbles. The Student should define the precise relationship of bubbles to Booms; essentially it is the former simply grown crazy. There must be the foundation underpinning for a growth expansion for a Boom, and bubbles consist simply of pushing that foundation to extremes. Too Much of a Good Thing is especially appropriate in economics, the later basically concerned with maintaining a proper March cadence through a growth cycle. The trouble comes in the fact no one knows what the proper rate of March is, which varies with the assumed growth and established capital of the economy. Now you understand Why economists argue so much!

An old adage among professional Readers in economics says when the economic terms start to blur from excess, find an newspaper article; the trash Talk in the article will bring one around. I will give my Readers this article is such tradition, and hope that the article has some relationship to the previous discussion. It also provides a Then and Now comparison of the search for regulation of Wall Street and Banking. Then was peppered with a search for criminal behavior amongst even the Innocent, and a distrust with the proposition that Anyone could make that type of Money without indulging in fraud. I still hold such doubts myself Today. One can only suppose there will be regulation of such entities if and only if, We again turn it into a circus, and nominate a Ringmaster who cares nothing about his own future. lgl

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