[Cryptography] Cryptocurrency: CME Approved, Coin Paychecks, FED, OpenBazaar ZEC BCH

Ray Dillinger bear at sonic.net
Mon Dec 4 17:17:52 EST 2017



On 12/04/2017 12:16 PM, John Gilmore wrote:

  Since that situation is when "long" owners of the shares are
> likely to lose money, short sellers can provide a warning to discourage
> buyers from investing when they're likely to lose.  Of course, those
> prospective buyers would actually have to LOOK and HEED that warning
> to avoid losses; it's not automatic.

It most certainly is not;  In fact many of those most in need of the
warning will instead see the downward movement of the price caused by
the short sell, and take it as a signal to buy more.  Because that's
the way they (don't) think.

The evidence supports the notion that most investors make up reasons
for their decisions long after the decisions are made, thinking backward
instead of forward.  Those whose decision is "buy", will believe after
the fact that the price shift downward was their reason for deciding that.

Market information becomes accurate, not because the investors know what
they're doing, but because the performance/valuation metrics of the
companies themselves continually redistributes wealth toward an accurate
distribution in the long run, regardless of how the individual investors
allocate their assets. The market information would be nearly as
accurate if the investors allocated money randomly, as long as they
didn't change the allocations much more often than they do now.

				Bear



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