Because their current main tools are not correlated with financial crises. So there’s no reason to suspect that governments get worse at making decisions simultaneously with financial crises—their processes, good or bad, will work as well as they do in any other crises.
If there’s a big disaster (oil spill, earthquake), but the betting markets continue as before, it’ll be fine. If the betting markets go haywire for a time, but there’s no immediate crisis, we’ll probably be ok as well. But when a financial crisis hits, both will be going wrong simultaneously.
The way I see it current system is just less transparent (which is by itself not a feature). We can’t measure how badly haywire current decision making system goes during financial (or other) crisis but that doesn’t mean it’s less correlated than a market would be.
Example: imagine making a decision while there’s an angry mob outside. With bricks and all. And you, Prime Minister, are solely responsible for what happens next. If they don’t like it, it’s all on you. Doesn’t happen in market scenario, does it?
Because their current main tools are not correlated with financial crises. So there’s no reason to suspect that governments get worse at making decisions simultaneously with financial crises—their processes, good or bad, will work as well as they do in any other crises.
If there’s a big disaster (oil spill, earthquake), but the betting markets continue as before, it’ll be fine. If the betting markets go haywire for a time, but there’s no immediate crisis, we’ll probably be ok as well. But when a financial crisis hits, both will be going wrong simultaneously.
The way I see it current system is just less transparent (which is by itself not a feature). We can’t measure how badly haywire current decision making system goes during financial (or other) crisis but that doesn’t mean it’s less correlated than a market would be.
Example: imagine making a decision while there’s an angry mob outside. With bricks and all. And you, Prime Minister, are solely responsible for what happens next. If they don’t like it, it’s all on you. Doesn’t happen in market scenario, does it?