Re:Well-behaved bubbles often make history
by forgotmysn on Tuesday June 15, 2021 @06:30PM
(#27522423)
what's the difference between "People buying stuff that's going up" and "New money flowing in?"
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Re:Well-behaved bubbles often make history
by AnimalMuppet on Tuesday June 15, 2021 @06:33PM
(#27522445)
None. "People buying stuff that's going up" is exactly "new money flowing in" to that asset.
But I may have left some confusion in my fourth paragraph. It's a bubble when it becomes a self-reinforcing feedback loop. People bought because it's going up, which makes it go up more, so more people buy, so it goes up even more, and so on. I didn't state that clearly enough.
Re:Well-behaved bubbles often make history
by forgotmysn on Tuesday June 15, 2021 @08:37PM
(#27523494)
I see, thank you.
It sounds like you're saying the provenance of the funds is a key indicator. People buying stuff that's going up because those people closely follow industry or sector news. The people who buy because THOSE people bought are what drive the bubble growth.
The difference is whether people are buying the stuff that's going up because it's going up or they're buying it because it's good and has intrinsic value beyond what they think the market will pay for it tomorrow.