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Lily Francus and Jesse Livermore — Understanding Financial Bubbles (EP.91)
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Is There a Fundamental Value Versuquidity Value in Bubbles?
In bubbles, what ting as if you go back to this idea of fundamental value versuquidity value. If they do believe that the risk is worth it, then they can put pressure on the price downwards. So i think that a if arbitrage, or a return to fundamental thinking, is what drives the collapse of bubbles. But we tryt to arbitrar something in the other direction. When it's going too high, you have all these instabilities and all these additional risk factors Thatare a consequence of market structure and just the way the transactions occur. It change the entire calculation. And the arbitrash mechanisms are more fragile and less reliable because of that very fact.
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