The GF is a key concept in Ponzi games (such as the recent speculative run-up in RE prices in So. Cal.) Sometimes the game participant is fully aware that the price he’s paying is ridiculously inflated, but he goes ahead hoping that he’ll be able to unload the property to a GF before the bubble bursts. It’s a gamble of course, as it is always impossible to predict when these things will end.

Most of the time, however, late entrants to the game are completely oblivious to what is going on and are motivated by greed, or fear of “being priced out”.