On Jun 7, 2008, at 12:23 PM, Jim Devine wrote:
can't there be interacting speculations, sort of a price/wage spiral
in financial markets, where speculation that dollars are going to fall
interacts with -- and thus reinforces -- the speculation that the
dollar price of cacao beans (and, more importantly, the US$ price of
oil) are to rise?
Sure. Speculative markets always overshoot--in both directions.
That's where the Ricardos and Keyneses make their fortunes. Somehow
ordinary mortals like us never seem to get the timing right!
Shane Mage
"Thunderbolt steers all things...it consents and does not consent to
be called Zeus."
Herakleitos of Ephesos
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