The key for whether market economy can automatically realize the equilibrium lies in that the economic volatility after unbalanced supply and demand is “positive feedback” or “negative feedback”. History proves that the trend that market economy develops toward “positive feedback” is the normalcy of capitalism. The results of economic crisis are to make the unbalanced supply and demand of the market coercively recover balanced state by “violently decreasing the production capacity”. The so-called “market balance” without “violent” and “coercive” economic crisis is only “pseudo-balance”. Recently, although “market balance” theory has been discussed by many scholars, the discussions do not reflect on the basic logic of “market balance”. In this paper, according to the theory of “insufficient consumption with capable purchasing ability” resulting from the basic contradiction of capitalism, the author critically analyzes “pseudo-balance” of market economy, and finally, the author further discusses the difference between “contradiction analysis” and “equilibrium analysis”, the difference between the two not only lies in the differently positioning the contradiction state but also consists of different logics of the two, in other words, “contradiction analysis” is the layout of “dialectic logic”, however, “equilibrium analysis” is to make the round limited in “form logic”.