4 ms·
> The inefficient pricing and the slowly updating pricing allows for the HIGHEST amount of leverage to work for people. > In any other market, unsophisticated
by beervirus 6y ago
> The inefficient pricing and the slowly updating pricing allows for the HIGHEST amount of leverage to work for people.
> In any other market, unsophisticated investors would have been margin called overnight. Instead they get to sit for years on slowly moving prices, and use those years to continue boosting their collateral as if nothing happened.
This is a really interesting point. I've never thought of it this way.
- kkotak 6y agoThe economy without credit/margin/leverage is unfathomable at this point and were it be that way for the past millennia, the size of the overall global economy would've been very very tiny fraction of today's, but arguably could've prevented most stress related diseases :).