I've seen discussion of Goodhart's Law + Conservation of Thought playing out nastily in investment. For example, junk bonds started out as finding some undervalued bonds among junk bonds. Fine, that's how the market is supposed to work. Then people jumped to the conclusion that everything which was called a junk bond was undervalued. Oops.
This thread is for the discussion of Less Wrong topics that have not appeared in recent posts. If a discussion gets unwieldy, celebrate by turning it into a top-level post.
July Part 1