NancyLebovitz comments on Open Thread: July 2010, Part 2 - Less Wrong

6 Post author: Alicorn 09 July 2010 06:54AM

You are viewing a comment permalink. View the original post to see all comments and the full post content.

Comments (770)

You are viewing a single comment's thread. Show more comments above.

Comment author: NancyLebovitz 11 July 2010 11:33:20AM 5 points [-]

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.