Taming Speculative Capitalism

Big speculative bubbles are rare events.

Gold is a purely speculative investment.

Speculative booms are driven by psychological feedback.

Dark energy, though speculative, solves numerous problems.

With the drip feed of QE induced liquidity now at risk, the recent spasms in financial markets leave little doubt about the growing dangers of speculative excesses that had been building.

There are also ideas to address speculative swings.

Bubbles are caused by feedback loops rising speculative prices encourage optimism, which encourages more buying, and hence further speculative price increases until the crash comes.

The EU s maneuvers may stabilize Europe in the short run and help it to withstand better the current speculative attacks on some of the euro countries government bonds, but they risk long term destabilization.

Their speculative frenzies ruined shareholders, customers, and the economy.

So Sarkozy shouldn t be lashing out against speculative capitalism.

So we should think hard about what speculative capitalism means.

Of course, farmland is much less important than other speculative assets.

In the view of Iraq, the claim unit is overly speculative.

Expectations become self fulfilling, oil prices rise, a speculative bubble is born.

Perhaps the speculative inflow scenario will play out, but in slow motion.

Speculative bubbles do not end like a short story, novel, or play.

Until credibility is re established, the risk of a speculative attack on public debt reflected in the current rise in credit default swap spreads would linger, given the ongoing budget deficit and the need to roll over maturing debt.

The effort to avoid the harm of flawed compensation decisions in the future should not be deterred by speculative arguments about unintended consequences. Financial firms should not retain the freedom to create perverse incentives that put all of us at risk.

It would seem more accurate to refer to these episodes as speculative epidemics.

The very announcement of the Fund s creation was meant to deter speculative attack.

As a result, fiscal consolidation becomes increasingly difficult to achieve, inviting renewed speculative attacks.

But the real case for holding it, then as now, was never a speculative one.

Frederick made French the official language and speculative philosophy the most important topic of study.

On the other hand, the estimate of the amount required would have to be speculative.

Nicolas Sarkozy, the leading contender in the French presidential election, recently lashed out against what he called speculative capitalism, and says he wants to moralize the financial zone created by the euro. What does Sarkozy mean by speculative capitalism?

Lately, of course, the fundamentals have reversed somewhat, and the speculative frenzy has reversed even more.

In 1956, the UK was facing a speculative attack in the midst of the Suez crisis.

Protecting France from speculative capitalism seems to mean interfering with free trade to protect local jobs.

Nor, therefore, is their interest in housing as a major speculative investment asset likely to change.

Thus, the market also attracts investors who are not interested in the commodity, but in speculative gain.

These misunderstandings have not been corrected, which means that the same kinds of speculative dislocations could recur.

In the cities, a lot of the cost of property is actually wrapped up in its speculative value.

The root problem is that financial markets can now mobilize tens of billions of dollars for speculative purposes.

On the other hand, in some places, a speculative bubble is fueling today s boom in vacation home prices.

Through financial intermediation, these government securities helped finance the western consumption and speculative boom that collapsed in 2008.

It encouraged financiers desperate to earn a return on abundant funds to put them to more speculative use.

Since 2000, we have seen the most dramatic evidence ever of speculative bubbles in markets for owner occupied homes.

Many investors also feel the need to balance increasingly speculative investments ( satellite positioning ) with much safer investments ( core positioning ).

Indeed, some people are already starting to salivate at the speculative possibilities of buying homes in currently depressed markets.

Second, many argue that raising interest rates would trigger a flood of speculative capital from low yielding advanced economies.

If investors know that a liquidity squeeze is no longer possible, they will refrain from speculative attacks on solvent countries.

But the long run can be long indeed, and the influence of speculative capital flows can be substantial and sustained.

A second approach would be to tax the big international banks, which are earning excessive profits on their speculative trading.

Taxes on speculative activity might encourage banks to focus greater attention on performing their key societal role of providing credit.