greed is not new

  1. Both theory and empirical facts do tend to show that, on the financial markets, the Invisible Hand does not always lead to welfare-improving general outcomes.
  2. Traditional economics has failed to grasp the complexity and dynamism of financial markets.
  3. A first step toward rectifying this problem would be to create a global risk observatory.

Guy Sorman on Wild Randomness:

The reason: grain or corn prices may at any point in time be driven more by speculation than by actual harvests. The rule applies to all transactions on financial markets, including oil, stocks, and derivatives.

In the short term—which can mean several years in practice—the connection can be tenuous at best and difficult to model.

Finance itself is a relatively young field of research in which data have been available in large quantities only over the last 20 years.