"Des waerelds doen en doolen, is maar een mallemoolen,"

"Des waerelds doen en doolen, is maar een mallemoolen," engraving from Het Groote Tafereel der Dwaasheid, 1720.

"The actions and designs of the world go round as if in a mill." South Sea bubble financial crisis.

Sunday, March 6, 2011

"Markets like totalitarian regimes"

Said Blackrock's Larry Fink who manages over $3 trillion, the world's biggest asset manager. This is the perfect example of a view that dismisses institutions and are bound to see totalitarian regimes as the only answer to confusion and uncertainty.

Because, yes, markets don't like confusion and uncertainty, but concluding that, therefore, markets like totalitarian governments, is firstly, logically incorrect, secondly, missing an entire world of social technologies to cope with uncertainty. 

And to quote, Mike Krieger: "Even if markets did like totalitarian governments, HUMANS DON'T".

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