The Market For Lemons, The Market For Bullshit, And The Great Cascading Credence Crash Of 2016

zerohedge.com / by Daniel Cloud / Jul 23, 2016 5:38 PM

The Market for Lemons, the Market for Bullshit, and the Great Cascading Credence Crash of 2016

“The cost of dishonesty, therefore, is not only the amount by which the purchaser is cheated; the cost must also include the loss incurred from driving legitimate business out of existence.”

George Akerlof, The Market for Lemons

People have begun to worry that we’re experiencing a crisis of confidence in our traditionally most prestigious institutions – in our political parties, and central banks, and great newspapers, and universities, and even in accredited experts.

Views that would have been regarded as extreme in the past also seem much more common now. The entire political spectrum, all around the world, seems to be in the middle of collapsing into a collection of smaller, more radical groups. Some of them advocate violence.

The problem doesn’t seem to be unique to this particular historical moment. There are other times in recent history – the 1930’s, perhaps, or the 1960’s – when the public seemed equally unhappy with existing institutional points of view. Like the present, they were periods of relatively rapid change in organizational and communications technology.

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