This is a must read simplification of how financial booms and busts work, with larger business implications. I mean this is how all things work, signalling builds credibility and certitude which leads to more trust and success.
The interesting thing is that the Internet is compressing the distance between signalling and reality. With information velocity increasing you must match the signal to the reality, if you don’t that gap will be identified and exploited to your detriment.
With that said, this is a generational shift and we may have one more generation that provides business with a trust lag, but it is no more than a generation away from having to reconsittute their business and marketing strategies around transparency as opposed to obfustication.
