I'm always taken aback by the hammering of speculators by the media and others and Anthony Jasay just nails the point in his recent article The Speculator's Bootstrap and the Efficient Market at Econlib
"The bootstrap theory of speculation is a real pearl among bootstrap theory. It does not figure in good textbooks, but is freely aired by the media, firmly held in popular opinion, and has an astonishing following among Eurocrats, banking regulators and high-ranking Finance Ministry officials."
He points out further;
"The speculator, if he is successful, lives by the same advice. He buys low and sells high, and never mind which comes first. The amazing feature of the bootstrap theory is that by buying, he can make the price go up high enough to let him sell at a profit. The same is true in the reverse order, when he sells, his selling depresses the price and he buys back. He can, in one word, conjure up the conditions that, repeated a few times, make him rich. It is beyond ordinary comprehension to fathom why everybody has not yet become a professional speculator, advancing on the fast track to fabulous fortune…" More…
The second article from the Nassau Institute points out that while the world awaits the results of the recent "fiscal cliff" negotiations in the US, few "leaders"in The Bahamas seem concerned about "our" fiscal irresponsibility.
The Nassau Institute hits home in their event article The chill of government financial irresponsibility.
"No matter the results of the "fiscal cliff" in the US, or Europe, it is high time The Bahamas Government gets its fiscal house in order for the sake of future generations. If not the chill being felt from decades of fiscal irresponsibility just might turn into a freeze." More…
