A sense of worry about the many negative unintended consequences of recent actions has come over me. Perhaps it has something to do with receiving “healthy” doses of government propaganda during my ten years in the Soviet Armenian school system. I can still remember the brain-cleansing we had to undergo about how Comrade Lenin loved children and how Comrade Stalin also loved children and how many cubic tons of iron ore were required to meet the five year plan of the… In the name of the taxpayer much change is being proposed. I thought corporations also pay taxes. Perhaps, it is the collapse of the Soviet Union which taught me so many lessons. Even today, I remember vividly the day when we heard about the massacres in Sumgait in February of 1988. In my memory, this was the event that sparked the collapse of a dark era started by the events of 1917.
It seems that people forget that to grow anything meaningful in a garden, the soil must be rich with humus and at the right acidity. It seems they forget that once something is planted that the ground and the roots should not be disturbed. What business does Congress have in passing a 90% tax on anything? Given things stay roughly the same, I am sure the economy will get better sooner or later. The challenge right now is that nothing is a given.
For people who trade via systems, I have a question. At which point does one decide to:
- modify the system (and to what degree and based on what)?
- discard the system (and why)?
- continue relying on the system (and for how long); if such a system is producing losing trades more recently but has worked fine for a long time (definition of time scales not relevant)?
Perhaps the answer contains clues regarding our recent government actions (and market reactions) where the scale of the system and the magnitude of its impact is great. The problem is further complicated by control over one’s actions but lack of control over [negative] consequences of those actions in human systems.
The second question that does not leave me alone is whether a game of chess (or any other game) can be won if after every few moves, the game rules are modified. Does the player quickly adjust and remain focused on winning the game according to the new rules (“queen can only move three squares at a time” for example) or does the focus shift on guessing what the next set of rule changes may be? After a few sets of changes and corresponding adjustments, does the player begin to suspect the rule maker in “supporting” the other side?