Reply #1: Markets ARE stupid

[Hawkowl]

I've thought this for many, many years. Economics dogma states that people act rationally on an individual basis in their own best interests, and therefore, if you aggregate everyone's actions, you arrive at the optimal solution for everyone via the "free market" (or Magic! as I like to think of it).

In reality people aren't rational and when you aggregate everyone's actions, the market most closely resembles a REAL market--picture black Friday's mob at Walmart. People act completely irrationally and unpredictably and their is nothing optimal about the mayhem "free markets" inflict.