Why Suppressing Feedback Leads to Financial Crashes

“The suppression of feedback only dams up risks and imbalances: out of sight, out of mind. But the imbalances haven’t vanished; they’re piling up unseen in the system, where they eventually break out at the system’s weakest point.  Central-planning manipulation ‘works’ by closing all the safety valves of market feedback, creating a dangerous but politically appealing illusion of stability and ‘growth.’ But the consequences of removing or suppressing feedback are catastrophic longer term, as the imbalances and risks pile up unseen until they bring down the entire system.”

http://charleshughsmith.blogspot.com/2013/06/why-suppressing-feedback-leads-to.html

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