Financial speculation can be damaging from "summary" of 23 Things They Don't Tell You About Capitalism by Ha-Joon Chang
Financial speculation is often seen as a harmless activity that benefits the economy by providing liquidity and helping with price discovery. However, this view ignores the potentially damaging effects of speculation. Speculation can lead to excessive volatility in financial markets, causing prices to swing wildly and creating uncertainty for investors and businesses. Furthermore, speculation can result in asset bubbles, where prices of assets become disconnected from their intrinsic value. This can lead to market crashes when the bubble inevitably bursts, causing widespread economic damage. The financial crisis of 2008, which was triggered by speculation in the housing market,...Similar Posts
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