Saturday, January 24, 2015

ONCE AGAIN ON MARKETS AND VISIBLE PRICES

Ronnie Elhaj n Perth Now (24 January) HERE 
‘Why Perth property market for units will ‘set its own pace’

“House sales are also experiencing mixed signals and property analysts are being cautious given the “volatility” of the market, with contradictory elements at play.
Nicheliving director of sales, marketing and acquisitions Ronnie Elhaj believes the “invisible
 hand” will direct the market.
“In other words, the market will manage itself and adjust accordingly,” he said.
“I like to listen to what the word on the street is because it provides me a decent insight into current consumer sentiment.”
Comment
The above is evidence that the metaphor “invisible-hand” is used as a mere space-filler in modern speech. It means nothing of substance other than to give speakers and listeners the pretence that they are knowledgeable about the mysteries of ecoomics.
The above quoted piece carries two contradictory ideas:
1 “the “invisible hand” will direct the market;
and
2 “In other words, the market will manage itself”.
Now which is it? Ronnie Elhaj does not elucidate.

Why? 
Because he can’t.  Neither can any other believer in the mythical invisible hand. 
Market are directed by VISIBLE prices, not INVISIBLE HANDS.

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