2 ms·
Oh come on. The uptick rule? Great example of a thought experiment used to contradict the results of experiments actually carried out under real circumstances
by Dilpil 18y ago
Oh come on. The uptick rule?
Great example of a thought experiment used to contradict the results of experiments actually carried out under real circumstances. (+ 5 points: http://math.ucr.edu/home/baez/crackpot.html http://math.ucr.edu/home/baez/crackpot.html)
Letting traders, market makers, and other market participants make bets on the value of a stock is vitally important. Liquidity is a good thing, highly informed markets are a good thing.
Is it really so terrible that insolvent companies' stocks go down?
- yummyfajitas 18y agoI believe the hypothesis (supported by the model) was that the loss of the uptick rule combined with a bubble bursting caused the crisis. An analogy: I did an experiment. I eliminated the "always back up your data" rule for a week. Nothing bad happened. Are you going to come up with thought experiments telling me this is a bad idea, in contradiction of my real experiment? I don't actually buy the hypothesis, but it isn't technically a thought experiment contradicting a real one.