tag:blogger.com,1999:blog-8152901575140311047.post3141968996182991530..comments2024-03-29T03:33:47.317-04:00Comments on Musings on Markets: The Market Solution!Aswath Damodaranhttp://www.blogger.com/profile/12021594649672906878noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-8152901575140311047.post-41084857973547701452008-09-30T12:32:00.000-04:002008-09-30T12:32:00.000-04:00When we talk about markets seems like we are talki...When we talk about markets seems like we are talking about something weird, some strange, odd. There is people over there, people that buy and sell, save and invest, produces, work. In this case people that took to much risk even not understanding the probable effect of it. <BR/>The free market is people doing all the above without monitoring. But us Dr. AD said in the post, they are greedy too. That's why people need to be monitored. Because they behavior may hurt others, or make them loose money, jobs, etc. There's not such thing us free market, the invisible hand is the government hand trying to put fences so we do not cross and hurt each other.Adriánhttps://www.blogger.com/profile/14657828734011919444noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-90458471228964458782008-09-30T10:53:00.000-04:002008-09-30T10:53:00.000-04:00While I do agree that both India and China have gr...While I do agree that both India and China have grown a lot more in a free market environment than under controlled and socialistic environment. Since I know more about India, let me restrict my argument to India alone.As much as the markets have opened up it is still a fairly regulated market.The currency is not completely convertible, FDI Investment limits still exist in most of the sectors, Securitization is not a big industry here, CDS doesn't even exist. SLR IS 25% and CRR is 9%. Infact Dr.Stiglitz makes a reverse case for the same. He believes that its no conincidence that the two fastest growing economies - India and China - are still controlled economies to an extent. And that's also the reason why we were insulated from South Asian Crisis of 1997. The argument is not "markets or not" but "markets with what degree of freedom"?Mahesh Sethuramanhttps://www.blogger.com/profile/01909074683189926487noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-53714387303163177532008-09-30T09:53:00.000-04:002008-09-30T09:53:00.000-04:00Dr. Damodaran,Being a relative newcomer to anythin...Dr. Damodaran,<BR/><BR/>Being a relative newcomer to anything financial, I've only recently started reading more deeply about stocks/investing/finance and subsequently have been more interested in the current financial crisis that I probably would have been otherwise. Within the past few days, I've discovered your website/courses and this blog, and after reading your expressed optimism of the market's ability to rectify itself, I wondered what kind of intervention (if any) you might consider reasonable to help alleviate the existing uncertainty within the economy.<BR/><BR/>Thank you!<BR/><BR/>Freddy EscorciaFrescohttps://www.blogger.com/profile/16512454238614323849noreply@blogger.com