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speculators are buying shares on broker credit

Is this something new, like the result of some deregulation?

You should really read John K. Galbraith's The Great Crash, 1929. It's a short little book.

I mean, blowing bubbles is what "market participants" do...

A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman

by Migeru (migeru at eurotrib dot com) on Mon May 19th, 2014 at 06:38:10 PM EST
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From the chapter The Twilight of Illusion in The Great Crash:

(Sorry about the readability, there still seems to be a 600px limit on image height...)

by afew (afew(a in a circle)eurotrib_dot_com) on Tue May 20th, 2014 at 02:17:56 AM EST
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No need to posit financial innovation or new Ponzi schemes in order to explain a margin-loan-fuelled bubble.

A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman
by Migeru (migeru at eurotrib dot com) on Tue May 20th, 2014 at 06:08:28 AM EST
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