Markets and Intervention

First off, I want to be emphatically and absolutely clear about my personal, philosophical, and analytical position that the invisible hand of the market is NOT the hand of God. In the long run, and never ever forget Keynes' 'In the long run, we are all dead', markets are efficient but they are given to episodic insanity. A market is a lot like a pit bull, a magnificent animal but sooner or later it bites you.
There is no such thing as an efficient and friendly market. It one intervenes to make a market friendlier, less unstable, one reduces the efficiency of that market. Making a market really friendly puts it in Fantasyland and in Fantasyland markets fail massively as we have recently seen. There is no nice solution to the instability of markets. It is just the way it is. If we ever get a Game Theory model powerful and sophisticated enough to handle the stock market then rational adjustments can be made. If. And when.
Be well and do good.

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