I do not believe that financial markets make the economy more efficient. The analogy I use is Earth. If it were reduced to the size of a basketball, it would be smoother than a billiard ball. However, at a human scale, there are mountains and oceans we can exploit….

The guy talking about making markets more efficient is thinking of something like rolling rocks down a mountain to power useful work. This indeed makes the Earth smoother, wearing down mountains and filling in oceans. But … [that] bears no resemblance to what people really do. They’re more likely to build a hydroelectric dam that holds water back, that is it keeps the system farther from equilibrium, not moves it closer.

Aaron Brown, Red-Blooded Risk

(I rearranged his words a little bit.)

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