Ep. 468: Irrationality with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
00:00
How to Create Bubbles
I wasn't prepared to see markets work that well. So I thought, well, you know, I keep trying this. Turned out no matter what the configurations of supply and demand, they would find the equilibrium. That was our idea. We started with an environment where people had complete information and we reminded them each period what the fundamental value was. They paid no attention to that. The question became not how do you create bubbles, but how do you make them go away? So we... Or the things that make bubbles more likely. More money. So if you inject money into it, you get more money. But first experiment was done in January 1956. My first paper was published
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