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This has been done before. History repeating itself. The easy ability for corporate entities to dupe smaller investors is the oldest scheme in the book. The
by alexasmyths 9y ago
This has been done before.
History repeating itself.
The easy ability for corporate entities to dupe smaller investors is the oldest scheme in the book.
The 1929 crash was dependent on it.
The 2000 crash was dependent on it - it was largely due to the fact that 'online investing' caused a flood of small-time money into the markets pushing up prices. When the 'smart money' decided to end it, they pulled out ahead of the dumb money and left others holding the bag.
The housing crisis had elements of this as well.
There is definitely an argument to be made that 'regulations hold people back' - surely - but without them there is a 100% guarantee that things will go sour.
And when I refer to 1929 - that's not even going back that far.
The entire history of economics is about this - the 'quandary' of why supposedly rational markets crash and burn so often. It's seems a rather apparent explanation would be the asymmetry of information (and greed) between some actors, and others.