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Old 2009-07-31, 20:40   Link #60
Silvanoshei
ぜんぴょう☆
 
Join Date: Oct 2007
Quote:
Originally Posted by velvet nightmare View Post
though the one thing that bothers me about the whole idea is how lawrence is betting everything on the market collapse. if we look at today's markets it seems impossible like that to happen based on market efficiency (for those who know what im talking about, arbitrage etc)

so the only conclusion i can come to is that the pyrite market is effectively a massive bubble (think US housing bubble). so i can't believe that the other regular merchants/store owners of the city arn't able to foresee the future fall of the pryrite market even though their main commodity is wheat and everyone already knows it's going to rise, so you shouldn't need a rumor in the first place. it's not like the pyrite would keep increasing in price indefinitely

Well, even the best stock broker can end up taking risks based on a friends word of mouth. I think the series (season 1) even talked about how unknown the market can be sometimes. Even though they know it wont last forever, everyone still wants a piece of the action. Hince why pryrite is still being bought.
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