[quote=FlyerInHi][quote=CA renter] Speculation is zero sum.[/quote]
There are other services involved in speculation. They need real estate and all the other stuff involved in living day to day.
Speculation can make markets more efficient. Same with underground black markets. They get goods to people who would otherwise go without.
Speculating with your own money is actually very healthy. Even speculating with other people’s money is fine if the people investing with you understand the risks. But speculating with money benefiting from Federal insurance is different.
There’s a good NYT piece:
Speculators tend to buy in anticipation of a supply shortage or increased demand. They sell in anticipation of a supply glut or decreased demand. IOW, they exacerbate booms and busts; if it goes on long enough, they create bubbles that can be absolutely devastating to an economy. They do not make markets more efficient because they are often behind price manipulation — whether intended or not. Speculation is zero sum.
