Tuesday, October 21, 2008

Putting economy behind Bar

RECESSION is not a four letter word. Rather it is one of the legitimate phases or seasons in free economy climate. Markets do not follow rocket science, but simple harmonic motions, a motion that is periodic and repeats itself at intervals in a specific manner.

M * d^2 D/ d^2 t = -kD
F = -kD
where M is mass F is force t is time D is distance from mean position.

Above implies, the force acting on a mass (BLOB) is proportional to, and opposite in direction to the displacement from its mean position. Hence, as the market moves away from its mean position, various forces start acting in opposite directions trying to pull it down or up respectively. Also, with growing economies (which means higher mass) these forces get greater in magnitude and so does the displacement or amplitude.

Now, if we use un-natural ways to suppress or mask these forces, we are disturbing the harmony and screwing the simplicity of the motion. Let economy Laissez-faire. But at the same time let it be closely monitored and regulated for greedy manipulations by the market players, which are obvious and conspicuous thru orthodox lenses. Markets need no maverick pilots. Interpreting and justifying unproductive deviations from the natural course in the name of unorthodoxy and liberalism will not reap results and lead to disaster in the long run. Homosexuality may be widely accepted as normal sexual behaviour, but can it bear fruits of love...