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Dan October 17, 2008 at 12:28 am

The hallmark of an efficient market is perfect information – that is when the buyer and the seller have equal information about the product. Then and only then will true and correct market value be determined. Anything less is a distortion at best and corruption at worst. Companies don’t know why they lay off people – they are responding to market distortions that they created.

As painful as it may be, the optimal strategy for both sides of any transaction is an efficient market with perfect information. In the long run it is cheaper, faster, and safer.

In the mirror image, it is profitable, productive, and diversified – the perfect asset! Let me explain:

I believe that the business plans of the future will be vetting of markets – all market domestic and international. Ebay has a 40B feedback system, Craigslist, the community flagging, CarFax, FAA, SEC (yeah, right), etc. Vetting of markets is the multi-trillion trillion dollar enterprise of the future and Social networks are the most substantial tool available for doing this. Yes, a Trillion dollars under the nose of this great new enterprise that we write about. Why has it not been monetized?

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