It Is Much Easier To

However, You Have To Recognize That Regulations Will Never Be Completely Successful And They Will Always Be Full Of Holes. You Must Constantly Be Ready To Fill New Holes. Actually Regulation Should Be Kept To A Minimum, But There Has To Be Some Cooperation Between Market Participants And Authorities - As Was The Case In The Early Postwar Years. The Bank Of England Was A Very Successful Regulator By Cooperating With Market Participants. This Cooperative Spirit Was Broken By The Market Fundamentalists.

In Certain Circumstances, Financial Markets Can Affect The So-called Fundamentals Which They Are Supposed To Reflect. When That Happens, Markets Enter Into A State Of Dynamic Disequilibrium And Behave Quite Differently From What Would Be Considered Normal By The Theory Of Efficient Markets. Such Boom/bust Sequences Do Not Arise Very Often, But When They Do, They Can Be Very Disruptive, Exactly Because They Affect The Fundamentals Of The Economy.

Making An Investment Decision Is Like Formulating A Scientific Hypothesis And Submitting It To A Practical Test.

Financial Markets ... Resent Any Kind Of Government Interference But They Hold A Belief Deep Down That If Conditions Get Really Rough The Authorities Will Step In.

It Is Much Easier To Put Existing Resources To Better Use, Than To Develop Resources Where They Do Not Exist.