How can we split equity markets from the ca-pital-sino? Meaning, of course, that equity techniques are an important part of finance and economics. What is not necessary is the "market" as defined by those whose main concern is picking pockets.
Let's see. Minsky talked about the inevitably of speculation, given the lack of constraints. Now, know, please, constraints are not, by necessity, imposed. Mature persons have restraints. Ever observe this? A sustainable economy would talk loads of grown-up decisions to come forth.
Has that ever happened? You can answer positively despite what we have seen of the partisanship splits of D.C. of late that seems so playground-ish from outside the beltway.
Minsky references here:
- Creativeness and oops
- It is not funny
- By necessity, Ponzi (or, one might say, pulling in sacrificial lambs - poor souls that they are)
11/01/2015 -- Good look at quants and their influence.