Another post on futures markets and speculation.
It will all work itself out.
"Adam Smith's enormous authority resides, in the end, in the same property that we discover Marx: not in any ideology, but in an effort to see to the bottom of things." Robert L. Heilbroner commenting on An Inquiry into the Nature and Causes of the Wealth of Nations-- We are no Adam Smith, but we are putting forth "an effort to see to the bottom of things."
2 comments:
tabarrok's post irritates me. kind of a band wagon post by him .. like the bill oreilly version of being an economist. kind of like you and me seeing a parade outside and going out and stepping in front of it. (it just read that way - for all i know he could be a 5th generation onion speculator). bascially I thought the logic was weak.
ggm
Congress also banned options trading for agricultural commodities after the Great Depression. It took 30 years to get them reinstated. It seems to me that the big problem in these markets is leverage. The big risks only come when you let people bet more money than they have.
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