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nstj · 2019-02-21 · Original thread
Well worth reading on this topic is a book called "The Alchemy of Finance"[0] by one of the most successful investors in history, George Soros (successful like "made a billion dollars in a day" successful).

Soros contends, and I tend to agree with him, that the concept of equilibrium is a complete farce, is not supported by the evidence, and has no relevance to the way markets operate.

A good way to determine the conviction of economists (especially academic ones) with respect to any theory of equilibrium which they may have is to ask them if they have risked personal capital in situations to prove their theories (ie: if equilibrium is real, then why wouldn't you bet on it). The answer tends not to be yes.

[0]: https://www.amazon.com/Alchemy-Finance-George-Soros/dp/04714...

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