What goes up!

An example of the concept of unstable equilibrium is when an (ice-cream?) cone is balanced on its bottom point, the slightest nudge will make it fall and it doesn't return. From a mathematics viewpoint I believe the world markets are inherently, in principle always in a state of unstable equilibrium.

There are three basic types or states of balance as in mechanics, illustrated by a solid cone. When it stands on it's flat side, the disc, when the cone is tipped and left, it falls back again as it was. Flat and upright. It recovers by itself.

Neutral equilibrium is when the cone lies on its side, if disturbed, nudged it stays in that position. However supposed thus the cone can be balanced on it's point (apex) tipped only the smallest amount lets it topple. A very unstable situation.

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To illustrate I give some more examples, in mechanics other (geometric) solids, by symmetries, a cylinder, sphere, a cube (sides, edges and even corners!) can be extremely highly sensitive unbalanced. Using your imagination you should be able to identify different possibilities.

Or like a (camp) fire only a spark once the dry grass the tinder has taken all the twigs will too, there is flames and the logs soon burn. In a house of cards bump one card just very slightly bumped, and the whole structure collapses, or consider a row of dominoes, as a chain reaction. If one falls all the others follow.

Or think of a golf ball lying on a little mound, if nudged it rolls away.

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I believe the stock markets are inherently always in a state of (a near) unstable balance, if people start selling and start to panic, everyone starts selling and the markets collapse. A very simple principle, and it cannot be argued.

Of course there must be protection, safeguards and (emergency) measures, but I maintain the principle still holds. There always is a place once passed, where once the process has started it will not be reversed.

If there is unusual trading and panic selling sets in, the markets will collapse completely.

Nowadays by far mostly transactions are "automatic", with computers, making everything just much faster. What used to happen over weeks and days, I would think now may even happen in hours and minutes. Together with all kinds of things, and many of it completely unanticipated. Total disaster, the stock market system destroyed and international trade in total havoc.

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Passing a threshold, over the edge there is massive inevitable disaster. There were accounts of extreme behaviour with the stock market crash in 1929 it is not unexpected. Even suicides as jumping from the trading floors' windows.

The stories don't sound that too far fetched, with the 9/11 terrorist attacks some people did jump from the highest levels. Although if so there really should be film footage of the stock market crash in 1929. It would illustrate how serious a market crash is and how fast it can happen.

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There have been other (smaller) stock market crises' since. The world financial markets are not a good system.

If I sell and you sell, he sells and they sell and all the time panic and picking up momentum and everybody just sells and sells till the all in all is worth naught in all.

Anyway jumping won't work with me I've got fear of heights it's quite normal.

What goes up, must come down! Eat, drink, be merry ...