What's the difference?
I know some of the economists I follow say speculation has played no role in the rise of the price of oil. I can probably accept that. They've got good arguments, no increase in inventories, whatever. (Actually, the "whatever" is shorthand for saying I'm too old to spend my time analyzing these arguments: they sound good, so I'll buy them, at least tentatively.)
But then I remember the tech stock bubble and the housing bubble. It seems as if in each case people bought, thinking they could resell at a profit. And as long as the bubble lasted, they could. Isn't that the same thing we have with oil--the speculative money has rushed in sensing an opportunity for profit--i.e., buy now and sell for a profit later?
Maybe the point is that such activity is good and proper, as Megan McArdle might argue, it represents the market trying to deal with uncertainty. I just wish the invisible hand wouldn't shake so much as it tries to play chess with our lives.
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