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You can learn a lot by reading intelligent posts which have intelligent comments. This one by Megan about the “end of capitalism” is an excellent example. Whether you believe in free market failure or regulatory failure, you should find something to support and challenge your thinking. But, even though the arguments are good and the models are rational, everyone tends to forget the simple fact that things don’t happen instantaneously. It takes time for information to flow. It takes time to develop understanding. It takes time to plan actions. It takes time to perform actions. This is why free markets never behave as beautifully as textbooks suggest. It is also why regulation never works so well either.

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