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to the extent that the market needs speculators, I think it is part of the "goal" of capital markets. a market of only long-term risk-averse allocators wont hav
by MrMan 6y ago
to the extent that the market needs speculators, I think it is part of the "goal" of capital markets. a market of only long-term risk-averse allocators wont have the liquidity necessary to create fair prices nor is it likely to attract as much capital when companies issue shares, as a market that has a "healthy" amount of speculation.
- drewcon 6y agoI have no problem with individuals or fiduciaries investing on short time horizons because they believe they understand something fundamental the next guy doesn't. But mass coordinated speculation isn't that; it's using a mob to affect the underlying system for profit -underlying equity be damned. And for all those that say "well Wall St has been doing that for years"...fine, let's address that too. Financial regulations are essentially a history lesson of past failure we've tried to correct. Let's be consistent.