Actually, all participants can be winners during the artificial buildup of prices. You sell to me for 100; I sell back to you for 105 & then buy it back at 110. Eventually, the music stops & the last person who purchased it get slammed.
It is this delay in the reckoning that allows the bubble to grow more extreme.
On Fri, Nov 13, 2009 at 07:00:42AM -0800, ken hanly wrote:
> It certainly would be interesting to hear economists and business analysts on this. This fellow is significant enough to be interviewed on BNN. I note that there are 175 comments on his article. Some of them are quite detailed. One critic claimed that the processes involved simply involve some speculators losing and some winning because of the fact that no real goods actually change hands. However this seems to miss the point that the price is artificially raised so that people are paying much more than they would for the real goods or at least that would be my understanding.
>
> Cheers, ken hanly
-- Michael Perelman Economics Department California State University Chico, CA 95929
Tel. 530-898-5321 E-Mail michael at ecst.csuchico.edu michaelperelman.wordpress.com