On Mon, Sep 28, 2009 at 8:56 AM, c b <[email protected]> wrote: > raghu, > > Isn't what you are saying almost tautological ? The majority of > speculators in a bubble couldn't be shorting by definition of a > bubble, no ? A speculative bubble _is_ a whole lot of speculation on > prices rising in something ,or not ? >
It is a tautology that a bubble is caused by speculators predominantly betting on rising prices. It not a tautology that speculators always and everywhere create bubbles. Whenever and wherever there is speculative money available, a bubble is absolutely inevitable. I don't think this point has been well recognized. The consensus seems to be that speculators *sometimes* cause bubbles when they go out of control. Not true. -raghu. -- Confucius say, dirty book rarely dusty. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
