From: raghu <[email protected]>
It is a bit surprising to see Dean Baker write in praise of speculators. That said, how does Baker's theory explain the mysterious absence of short-sellers earlier in the bubble cycle? In other words, how did these insightful people allow the bubble to inflate to such monstrous proportions in the first place? -raghu ^^^^^ CB: Here's some amateurish "speculation" on your question. Along the lines of Max's answer, first, the shorting isn't insightful when the bubble isn't ready to burst at the beginning. Shorting is profitable _when_ the bubble bursts. Also, the shorters don't have control over allowing the bubble to inflate. They just exploit the fact that it is inflating at the point it is near bursting, maybe ? _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
