Hacker News
points by howunfortunate 1 day ago | 0 comments
I don't trust the market to calibrate "value" the same way that I subjectively define it.

But I trust the market to calibrate value about 10,000x more than I trust any person or group of people to do so. The thought of that is frankly terrifying.

[–] ceejayoz 14 hours ago
The market is a group of people, and much of that decision making is in the hands of a very small proportion of it.
[–] howunfortunate 13 hours ago
To be more precise, the reason I trust the market is the "skin in the game" and the decentralization / localization of decision making. People with something to lose tend to actively "vote" only on what they know something about.

Not that it's somehow "not people" (of course it is).

[–] ceejayoz 13 hours ago
> People with something to lose tend to actively "vote" only on what they know something about.

"Prediction" markets have rendered this clearly false of late.

> the reason I trust the market is the "skin in the game"

The market expects economic bailouts and other assistance during downturns, because individual investors with 401(k)s demand it, despite the perversions of market incentives that result.