The dangers of central bank intervention...

It is a property of evolutionary adaptive systems--life, technology, business, the economy--that small errors are required to avoid large ones, because error is information which the overall system uses to ensure stability.  Errors tell the system what doesn't work so that over time it "chooses" what does.  Naive interventionists which override small errors in the name of stability therefore starve the system of information it needs to remain stable.  In fact, they guarantee large scale system instability, as much larger errors occur in time...no stability without volatility.

Nassim Taleb

© 2015-2018 Mont Alto Capital LLC -- All Rights Reserved

134 Spring Street, Suite 301 New York, NY 10012 USA