29 March 2001 - market: bad candidate

According to economic theory, stock market prices reflect the knowledge of all buyers and sellers. In other words, the market is smarter than any of its participants. That means the market is the opposite of a mob, whose aggregate decisions are stupider than those of any individual participant.

The difference between a bad candidate for elected office and a good candidate is that the bad candidate prefers the electorate to be a mob, not a market, and the good candidate doesn’t exist.