This is an interesting video about how the introduction of wolves led to less deer, which led to more vegetation, higher trees, more beavers, and more birds, which eventually led to changes in river flow. Pretty surprising.

This could be relevant for us on two levels:

1. Introducing new legislation will create many many many unforeseeable events. Maybe this could be an argument for smaller government intervention in business?

2. Introducing new legislation or new financial products or new institutions can completely change the landscape of the markets and contribute to the principal of ever-changing cycles (destruction of old profitable opportunities/creation of new profitable opportunities.)

Gary Rogan writes: 

There are almost never totally certain explanations in these situations, because of the number of variables and the inability to know so many things or to go back in time to be sure. It is funny though to hear some of the explanations every day about some market with only the relationship to some favorite factor changing (the markets are rising/falling/staying flat today as/in spite of/while/etc. something else is happening). The truth is rarely does anybody know for sure, and those who know aren't talking.





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