Sure, but for most people even in case 1 you still have to have food, clothing, shelter, etc. Those needs don't disappear just because you want to speculate.

Sure, but for most people even in case 1 you still have to have food, clothing, shelter, etc. Those needs don't disappear just because you want to speculate. Now you might be able to speculate quite effectively buying when prices are low and living off of your stores when prices are high. But everyone can't do that by definition, so we're saved from case 1 totally throwing a monkey-wrench into the works.