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The Cause of Bubbles =Investment vs Financial Engineering
- netcan 18y agoThis is an age old discussion: How do I create the incentives I think are needed to get people to put money into the things I think are good, in a way I think is good. If you're wrong about what good is, you can make a big mess. Very big. Even if you are reasonably confident you know what good is, you still have the impossible task of making sure whatever you suggest is not having any unexpected consequences as tax implications become a more prominent effect of this, that or the other, then normal market effects. This is the tool we're used to using to deal with these kind of issues. It's a fairly blunt utensil.
- known 18y agoCurrent Market Capitalization < 10 x Quarterly Revenue/Sales of the Company. Everything beyond is either irrational or manipulation or bubble.