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A corollary is to say that this is what free markets look like when driven by greed. We can't just blanket say that any government interaction with a market is
by raiyu 9y ago
A corollary is to say that this is what free markets look like when driven by greed.
We can't just blanket say that any government interaction with a market is negative. Sure many aspects are. But there are positives as well.
If you look at the housing crisis that occurred that was because the market was becoming unregulated over time and because fraud was allowed to flourish. That was then coupled with human greed and it wasn't entirely the government or the banks faults either, because if regular people weren't going out to buy houses to make money doing nothing, then there wouldn't be such a huge collapse.
At the end of the day it's all the same. People want to get rich doing nothing and any opportunity to do so brings out the greed in individuals. If there weren't some winners in this equation, especially winners that you can relate to, then people wouldn't join in. But when an everyday person makes money this way then everyone starts thinking, well that person isn't special, why can't I do the same?
More often than not the early investors are the ones that reap the profits and hope to exit on time, while those entering the game late are the ones most likely to incur losses.