ABSTRACT
Neoclassical economics, by arguing that market economies are inherently stable, permanently marginalized the study of the real boom-and-bust business cycles of credit-driven economies. For most economists the credit or business cycle is created by external shocks, exogenous to the otherwise stable economy. True strategy takes into account the dynamic possibilities of business cycle, recognizing that there is no one size fits all strategy. Every strategy has a counter. Bears and bulls are general categories representing opposing forces. Exactly how they position their assets at any particular moment varies with their assessment of the opportunities and dangers of the current situation, especially in relation to the business cycle. When an economy reaches a culminating point in a business cycle, not only financial firms, but also industrial and other firms will align with either the bears or the bulls, according to their assets and vulnerabilities. Neoclassical economists propagate the myth that the only power capable of regulating modern economies is the government.
