By : Edmond F. La’lang (economic and environment observer)
Reflectivity theory of Georges Soros said that growth would increase linearly ngalami often dibubble or appreciated beyond their fair value by achieving growth and excess profits by using all means, strategies and funds that eventually reached its peak at a certain price level. In the linear growth (bullish) will be achieved "prosperity phase" that often makes people more excited, greedy and self-confidence to continue growing, though aware of it or not will cause effects similar to drug addiction are always trying to rise above your level of self and environment ( self and environment carrying capacity) according to the Bio-Economic theory which is an overdose of the poison or overbought. Angle slope becomes very steep price increases achieved in just a short time (high return high risk) that causes the condition of the body or stock exchange and the economic engine will quickly heat up (overheating).
According to Tannous and Fessant Econophysical method is similar to electrical circuit that continues to provide power to move and work, and according to the theory of Paul Omerod Butterfly Economic activity is a butterfly seeking nectar plants (similar to the credit of interest that was sweet honey or hordes of ants and walk works alongside busy looking for food and sugar tirelessly. After reaching its peak, will pass the process of "self-reinforcing" from Reflecsity (George Soros), overloaded electrical circuit theory econophysical (Tannous and Fessant), stacker of hordes of ants on one narrow area (bottleneck) theory Economic Butterfly (Paul Omerod), peak carrying capacity of Bio-Economic theory can spend most of the funds, time, opportunity and wealth for the sake of the victim to achieve a higher level, but it can not be achieved, despite performed repeatedly. Also Elliot Wave Theory can give longterm wave economic cycle on 5 – 30 years indeed 50 – 100 years prediction that based on psychological mass and socionomic that analyzed social aspect on economy dynamic and Astro-Financial that used astrology science to align what happen in Financial Market and Astronacci is used Astrology and Fibonacci Methode to know and how the financial market mechanism.
This process is similar sideways consolidation of management and economics, but generally business people and economists do not really know, do not even realize this critical condition by continuing to expand a business, buy shares at high prices, taking high-risk loans, because it assumes that conditions of economic growth, market share and the stock market remains promising prospective growth. If you've run out of funds, resources and opportunities to ride, start a process of nervousness, frustration, confusion on crowded conditions (clustered) that cause congestion, and a lot of hot air room rumors are confusing. And in the end it came to pass catastroph (George Soros), landslides, snowballing, body fatigue and shock (Bio-Economic), earthquakes (Tannous and Fessant), and the shower of ants by hand from outside interference, in which the stock price and economic growth to be toppled by a drastic reduction process or happening motion free fall by gravity to lowered all the mass and assets from its peak height to the lower level (base) to a level where he began to rise. This is where the process of law The Law of Demi-nishing Return, where if we go up like a bullet trajectory (mechanics) at a steep angle (greater than 70 degrees or more than 45% slope), say within 1 hour travel time in height (Y ) 1,000 m then we will fall quickly by gravity at short distances 200 m (X) from which we begin to rise (point 0). Thus all the power efforts and human performance in a specified period will be corrected naturally in place around the height and location where he began to make the climb, businesses and activities that have to spend a lot of money, effort and time that mean a return to Point Break even point only.
The experience of loss is the investor and the company did not alert, unprudent, unprofessional and inefficient in managing the funds, effort and performance without even knowing the condition of the business cycle ha man who not only driven by his human hands, but also controlled by the "Invisible Hand" of the natural and supernatural forces that always influences on human psychological and behavior in everything activities. In the midterm and long term in space and time, the influence of natural and supernatural strength will be very dominant in influencing the dynamics of human life in all aspects of life, including economic activities.