Mind Crunch : The Wealth Curse

Some people are planning today to buy a house 10 years in the future. And other people are planning today to sell a house 10 years in the future. But there is no market open today to ensure that the number currently planning to buy a house 10 years in the future equals the number currently planning to sell a house 10 years in the future. Planned future excess demands are almost always non-zero, even in a world of perfectly flexible prices. Our planned future trades are "false trades", at disequilibrium expected future prices. It is impossible for us all to realise our current plans for future trades.

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Posted: July 15th, 2011
at 7:37am by mnp


Categories: mind crunch

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