On Thu, Apr 12, 2012 at 2:17 PM, Shane Mage <[email protected]> wrote:
> On Apr 12, 2012, at 2:20 PM, raghu wrote:
>> That doesn't prove anything. Speculation can amplify price movements
>> both ways i.e. vastly increase price volatility, so it is not wrong to
>> say that when prices are elevated [depressed] , part of the increase
>> [decrease] is directly attributable to the actions of speculators.
>
>
> Which is relevant only to the short-term speculators themselves.
> Over the longer term it's the fundamentals that count and the speculation
> washes out.


Didn't Keynes already answer this type of reasoning with his immortal
quote about our long-run longevity?
-raghu.
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