I'd like some feedback/a critique please - dub, page-9

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    Yesterday I posted about the reason why according to the proponents of the Efficient Market Hypotheses TA & FA cannot work be it during normal times or otherwise.

    Today If I may, I would like to pass a quick comment on this:

    "For mine, there is no doubt that the market (and a lot of other things) are going to crash. It’s inevitable, and would (and SHOULD) have occurred well before now if normal market forces had prevailed"

    In other words, due to government intervention at a time when the markets were ready to punish all of us for previous Wall Street excesses with some form of Schumpeter's gale, the unavoidable chain of bankruptcies, the scourge of unemployment at 21% of more, the kitchen soups, the bank runs, the home evictions, etc, etc have all yet to fall upon us, but now with much more severity than what would had been the case if that malignant intervention did not occur.

    The first thing to say is that some people seem to believe, wrongly, that there’s something inherently moral about the free-market highly democratic outcomes, democratic because in it every dollar represents one vote, something that immediately punishes the poor for being poor, the very same people that when the market sneezes or the Schumpeter gale starts blowing ought to loose their jobs in droves.

    Why is that? Apparently because the appeal of simplicity offered by goldbuggism, which is intellectually easy while Keynesianism is intellectually hard, as evidenced by the number of people on this forum capable of making a single comment about the IS-LM model, a model which tells us that in a liquidity trap situation the "normal market forces" just set the economy at equilibrium (I bet that most people here do no understand what that means) at a point well bellow full employment and this for a very long period of time and. needless to say, at an horrendous cost to millions of people.

    " Schumpeter's gale, is a concept in economics which since the 1950s has become most readily identified with the Austrian economist Joseph Schumpeter[1] who derived it from the work of Karl Marx and popularized it as a theory of economic innovation and the business cycle.

    According to Schumpeter, the "gale of creative destruction" describes the "process of industrial mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one".[2] In Marxian economic theory the concept refers more broadly to the linked processes of the accumulation and annihilation of wealth under capitalism.[3][4][5]"


 
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