Self-reinforcing process

If a self-reinforcing process goes on long enough it must eventually become unsustainable because either the gap between thinking and reality becomes too wide or the participant’s bias becomes too pronounced. Hence, reflexive processes that become historically significant tend to follow an initially self-reinforcing, but eventually self-defeating, pattern. That is what I call the boom/bustsequence. – George Soros

Self-reinforcing process

Igor Marinkovic

Electronic engineer, futures trader and property investor and total beginner in making good web sites