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Yes, of course, some speculation can lead to improved market efficiency. I suppose we should define at what level of speculation deems a speculative market. "I

Yes, of course, some speculation can lead to improved market efficiency. I suppose we should define at what level of speculation deems a speculative market. "I think most research shows that a moderate amount of speculation actually decreases volatility and makes market manipulation more difficult." I'd be interested to read such research. To me, this current craze (Stocks, housing, crypto, etc) just doesn't pass the sniff test. It just seems off. Has for a long time. Something has to give. It doesn't make sense. I tell my friends, either things correct in a large way or we're going to be eating $50 cheeseburgers. Again, who knows!? If you did, you could make a killing.

shawnz 5y ago
> I'd be interested to read such research. See here for example: https://www.bankofcanada.ca/wp-content/uploads/2015/11/wp2015-42.pdf https://www.bankofcanada.ca/wp-content/uploads/2015/11/wp201... > It doesn't make sense. I tell my friends, either things correct in a large way or we're going to be eating $50 cheeseburgers. Why not? My parents paid 50c for a cheeseburger in their youth and now I pay $5. What doesn't make sense about inflation? It is the expected way in which our market works.
- azinman2 5y ago
  A $5 burger would be super cheap in SF, difficult to find, and unlikely one worth eating.
- chasebank 5y ago
  Thanks for the link, I'll have a read. From the abstract, it clearly references only hedge funds and swap traders in the study. Most speculative markets get in trouble when retail gets involved. > Why not? My parents paid 50c for a cheeseburger in their youth and now I pay $5. What doesn't make sense about inflation? It is the expected way in which our market works. My point is that current asset prices only make sense relative to an $50 cheeseburger at current prices, not that inflation cannot occur and cheeseburgers won't be $50 in the future. Again, I don't have the answer. Wish I did. Wouldn't be reading HN at work but building golf courses :).

shawnz 5y ago

> I'd be interested to read such research. See here for example: https://www.bankofcanada.ca/wp-content/uploads/2015/11/wp2015-42.pdf https://www.bankofcanada.ca/wp-content/uploads/2015/11/wp201... > It doesn't make sense. I tell my friends, either things correct in a large way or we're going to be eating $50 cheeseburgers. Why not? My parents paid 50c for a cheeseburger in their youth and now I pay $5. What doesn't make sense about inflation? It is the expected way in which our market works.

azinman2 5y ago
A $5 burger would be super cheap in SF, difficult to find, and unlikely one worth eating.
chasebank 5y ago
Thanks for the link, I'll have a read. From the abstract, it clearly references only hedge funds and swap traders in the study. Most speculative markets get in trouble when retail gets involved. > Why not? My parents paid 50c for a cheeseburger in their youth and now I pay $5. What doesn't make sense about inflation? It is the expected way in which our market works. My point is that current asset prices only make sense relative to an $50 cheeseburger at current prices, not that inflation cannot occur and cheeseburgers won't be $50 in the future. Again, I don't have the answer. Wish I did. Wouldn't be reading HN at work but building golf courses :).