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If it’s a bubble, then the long term value people are now counting on to retire with in the future is not actually real though, right? Like a bubble popping doe
by pfannkuchen 1y ago
If it’s a bubble, then the long term value people are now counting on to retire with in the future is not actually real though, right? Like a bubble popping doesn’t destroy real value that used to exist, it exposes fictional value that never really existed.
- rightbyte 1y agoIt reallocates real value to the capitalist class. Most of us don't babysit stocks 8h a day and will be holding the bag.
- pfannkuchen 1y agoWhat’s the mechanism you have in mind for that happening via bubble? They sell early before the crash? I’m curious if that actually happens, since the mass psychological nature of market crashes seems to make them difficult to predict reliably, even for people with a lot of resources. Inflation on the other hand definitely does reallocate real value to whoever already owns a lot of assets, and I believe inflation often goes along with bubbles, since credit expansion is what usually kicks off the bubble in the first place.