Speculative nature of markets creates instability from "summary" of The Money Culture by Michael Lewis
The stock market is a place where people go to make money. It is a place where dreams are made and shattered in a matter of seconds. The speculative nature of markets is what makes them so exciting and so dangerous. People buy and sell stocks based on their beliefs about the future, not on any concrete facts or figures. This creates a sense of instability in the market, as prices can rise and fall dramatically based on nothing more than a rumor or a hunch. In the stock market, there are winners and losers. Those who are able to accurately predict the future can make a fortune, while those who get it wrong can lose everything. This creates a sense of competition and urgency in the market, as everyone is trying to outsmart everyone else. This constant battle for supremacy can lead to wild swings in prices and create a sense of chaos in the market. The speculative nature of markets als...
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