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796 sats \ 9 replies \ @SimpleStacker 31 Oct 2023 \ on: Meta Econ Takeover Day 14 meta
I'm guessing people probably don't like Keynes here, but it's always good to keep in mind this truth: "The market can stay irrational longer than you can stay solvent." Stay frosty my friends
Good quote and very apt
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I busted that quote out yesterday. Keynes had many great insights, he just fundamentally misunderstood economics.
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the issue is the interpretation of "you" I think he unwittingly reffers to "insiders"
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My understanding is that the "you" is whoever is trying to profit off of speculation.
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Speculation is a zero sum game unless you have special knowledge/skill/advantage which is basically "inside" information
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That's about right, in expectation, at least according to the Efficient Markets Hypothesis. I think the quote is aimed at people who feel like they've identified a trend that other people aren't aware of and want to invest accordingly.
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I know the hypothesis but... why do you type this?... The benefit from trading abstractions in markets is moving of risk and perception of risk, lets not go there... I like your nym. I can relate...
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wasn't sure exactly why I was typing... but then 180 sats!! woop!
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Perhaps I should be a bit more discerning, but I like rewarding engagement.