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The sophisticated participants are well aware of the economic realities, but as long as there's money to be made (eager retail investors tagging along), they'll
by ctvo 6y ago
The sophisticated participants are well aware of the economic realities, but as long as there's money to be made (eager retail investors tagging along), they'll keep this up, because why not?
- Spooky23 6y agoThere's an obvious moral hazard for these larger players, because as it stands today, heads they win, tails we all lose. We have a defacto policy of socializing risk for financial institutions. You're not hearing about money guys jumping out the window in 2020 or 2009 like in 1929. The firms are corporations that insulate the principals from the risk. (Until about 20 years ago, many of the big players were limited partnerships, for example)