Re: The problem with markets
I think you've missed the problem. It's not the markets, it's the fact we're human.
In a perfect world (Tim's world, it would seem), such risks would be accounted for and be factored in, as they are in a lot of industries. The desire for profit would be tempered by the knowledge of the risk that it would all be lost if conditions changed. Thus we would account for such loss of crops, or specialist skills, or customer demand.
In this world, we see those that take risks rewarded, so we take disproportionate risks. We don't see the ones who were not rewarded, often enough, because they aren't around to tell us about it. Thus humans fail the market, and thus the market fails it's humans.