Do you seriously believe that Cyprus was main cause of the bubble?

[Cluster2k]

Ever watched the Finance section of the nightly news where some stock broker accurately describes the day's market behaviour?  Hindsight is 20/20 as they say and the talking head always give a very detailed description about why the market moved the way it did and exactly what the traders were thinking.  The presenter never sits there and says 'well, it was pretty irrational today and I don't have a good explanation about what people were drinking'.  I feel the bubble of 2013 was very much the same.  Chances are we may never know whether it was Cyprus or a bunch of traders buying because other like minded traders believed it would go higher still.

A real estate agent once told me he 'sells the sizzle, not the sausage'.  He was a salesman selling hopes and dreams and couldn't care less about the item he was selling.  Maybe Cyprus added a bit of sizzle to the market with bitcoin holders' dreams of Cypriots rushing to bitcoin dealers to get money out of the country.  A bit of old fashioned buy the rumour and sell the news.

I remember looking at the exponential growth past $100, $150, and then $200 and thinking at the $100 stage it was all going to end in tears.  Those lucky souls who bought at $250+ must be feeling mighty pleased right now as the greatest fools we could find.  It could be viewed as a metaphor for the way some people extract money from modern Western economies too.  Buy value, but damn well try and find a sucker really quickly who will pay more still.  Don't want to be the last chump holding the bag when it all collapses.

[yayayo]

Cypress was a convenient event for the media to latch onto.

Anyway... greed and speculation was what caused the bubble... the rest is just lazy journalism.

Reasons for market movements presented by journalists almost always lack any kind of proof.

There are a millions of possible reasons for a certain market movement. Just because one of these possible reasons has high visibility doesn't mean that it's the true cause of the market movement.


ya.ya.yo!