*UPDATED* Markets, the credit crunch, uncertainty and a social solution

Heard on Radio 4 this morning:

"The market hates uncertainty."

While most analysts and investment bankers would agree this is a truism, it is no doubt a problematic statement when it becomes clear that the idea of perfect market systems operating in a vacuum of efficiency and equilibirum is inherently false.

You could argue that those of us working in PR - particularly digital and social media - have been able to recognise this quicker than others.

Indeed, I think this is what Umair had in mind with piece on Next Gen Business Strategy.

Linked with this is a video interview with Clay Shirky by Faster Future's David Cushman.

In it Clay addresses the current financial instability as an "interested amatuer" and thinks about how the financial 'system' might look in the future with community enabled micro-financing initiatives - such as Zopa or Prosper - supported through social and peer-to-peer lending.

 

As a footnote, it is worth noting that systems-based thinking is not alien to the field of communications: James Grunig built his four models of communication on systems theory and others in turn critigued his work for ignoring the 'human' elements within communication. You can download an evaluation of the debate Grunig vs Pieczka (pdf)I have written previously if you're interested.

*UPDATE* Rainier Stephen Waddington has posted showing Zopa's lending remains strong and asks: " whether the current financial crisis has created an artificial bubble for social lending schemes or whether they are set to go main stream?"

Technorati tags: Credit Crunch, Umair Haque, Clay Shirky, David Cushman, James Grunig