Update: Maxims are true until they are not

I wanted to update a prior post where I had exposed some false business truisms. The recent financial crisis has given me the opportunity to update that list with a couple more. 

Free markets tend towards equilibrium – Untrue says George Soros in his recent interview with Fareed Zakaria

Financial markets can self regulate – You know this is untrue if you’ve been following the recent events in the financial sector with the collaps of Bear Stearns, Fannie and Freddie and of course Lehman, Wachovia and so many more..

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