Quote:
Originally Posted by Flames in 07
Speculators speculate on the true value of something. Speculators estimate that current values are wrong and they look to close arbs.
It would be much more accurate to say that speculators are fixing inefficiencies or in accurate valuations, than to say they artificially alter a price.
If you do your learning on globeandmail.com you you don't get to learn much about business or economics. You just get to learn that oil and alberta is/are evil.
EDIT, if the CAD was in fact over valued, speculators would sell the crap out of the CAD, subsequently reducing it's value.
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Ok, first off I used to work in the patch in northern BC and Alberta so I'm not "anti-Alberta and anti-oil".
And I don't profess to be a business or economics expert however I think we all saw what speculation and "pumping" up of stocks led to in the world economy in 2008.
Just because I posted a globe and mail article doesn't mean I don't get info from other sources either.