There are still some people around who believe that "the market", the "free economy", in short, capitalism, can fix itself, can run without government help, it stops monopolies, creates competition and that prices are set according to demand and market conditions. Patently, as the panic in world markets show, this is untrue.
Perhaps though, for me, the stupidity of "the market" was shown on Friday. Whilst some might say that banking stocks could expect a hammering (although with a government guarantee this still seems daft), there were some stocks that the market abandoned which shows the holes in free market thinking.
Take, for example, Severn Trent water, whose share price on Friday was down more than 6%. Why were shares in this company down ? Will people in the Severn Trent area have to take less baths ? Will people in the area they cover suddenly stop drinking water ? In many ways Severn Trent might actually sell more water as people rely less on the bottled variety.
So why were their shares down 6% ? Because the market is stupid.