Subject: Unintended consequences Stock Market

Posted by Philip Abode on 5/7/2010
In Reply To:Unintended consequences Stock Market Posted by Charles Tse on 5/7/2010

Message:

Charles Tse wrote
I find that causality thinking (instead of systems thinking) dominates financial news, as reporters look at what happened and then try to assign a cause to it. As a result, we get funny headlines such as "Strong job report pushes Dow higher" if market is up, and then later changed to "Job report disappoints investors; stocks plunge" when market turns around, even when the content of the job report doesn't change at all.

Is not systems thinking a form of causality thinking? I would think that systems thinking attempts to describe hypothetically what may be described as “chain of causality.”

Philip

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