Daily Speculations

The Web Site of Victor Niederhoffer & Laurel Kenner

Dedicated to the scientific method, free markets, deflating ballyhoo, creating value, and laughter;  a forum for us to use our meager abilities to make the world of specinvestments a better place.

 

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9/14/04
Pressure and Markets by James Tar

I was told over the weekend that the reason rooftops are blown off houses and buildings from the force of hurricane winds is common DECEPTION. I was told that the real reason behind this is actually due to the difference between Air Pressures from the outside and inside of the house or building during a hurricane. Essentially, the extreme difference between the air pressures of the hurricane and house demands equilibrium, thus the roof of the house is ripped off completely so that the air pressure becomes balanced. I thought I would bring this to the list as I do not know the real reason, but as there are many talented scientists, physicists, etc., I thought it was an interesting topic. If it is indeed true, that air pressure is the reason why rooftops are sucked off the tops of structures, I think this is very much like the phenomenon how we procure our capital and assets, our "money house" if you will, during challenging, or extreme market environments. We try to batten down the hatches, shutter the windows, board up the entries or exits, we stay at home, we keep quiet as the market storm approaches and hits as it picks up force.....we trade less. Or, we close shop completely. But, the market pressures are still too great, they are too powerful, we still get blown up.