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The Great Hargeisa Goat Bubble

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Anybody else listen to this, I heard it in the in the car today

It's a bit drawn out, but somewhat amusing, and oh so true.

http://www.housepricecrash.co.uk/forum/index.php?app=forums&module=post&section=post&do=new_post&f=22

http://www.bbc.co.uk/iplayer/episode/b00k9p0w/Afternoon_Play_The_Great_Hargeisa_Goat_Bubble

I heard it the first time around in 2009, great material, should be mandatory listening for all A level economics students.

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http://www.bbc.co.uk/iplayer/episode/b00k9p0w/Afternoon_Play_The_Great_Hargeisa_Goat_Bubble

I heard it the first time around in 2009, great material, should be mandatory listening for all A level economics students.

Yes, I liked the way it explained hedging, and derivatives in such a way that made them sound implausable, and too good to be true, but a great way to get rich.

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Text version here, which I post at every available opportunity ;)

http://www.juliangough.com/the-great-hargeisa-goat-bubble

"Sadly, no," he sighed. "It is the tragedy of arbitrage opportunities: they are killed by those who love them. The Market abhors a price discrepancy... But oh, it is beautiful to watch the market corrected by the invisible hand! The success of my scheme was noted by others: by the third day, rivals were driving goats onto the runway ahead of me. Our competition in the market that afternoon drove up the price of goats. Thus, the market price of two goats, paid to us that morning at the airport for each one of our slaughtered goats, was by that afternoon unable to buy us two goats in the market. Goat hyperinflation had set in, for at the airport the next morning we demanded double the new market price for the goats we drove into the path of an old Aeroflot Tu-144. The airport manager agreed the new rate of compensation. Thus, the compensation now being indexed to the market price of the goat, where the price of the goat is n and the compensation is 2n, capital was in effect free: no matter how high the goat price soared, the fresh capital for the next round of goat finance soared along with it. The tap was held artificially open, and a speculative bubble made inevitable.

Edit: What is going on with the tags in this thread?.

Editedit: Seems to be a forum problem.

Edited by Kilham

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Anybody else listen to this, I heard it in the in the car today

It's a bit drawn out, but somewhat amusing, and oh so true.

http://www.housepricecrash.co.uk/forum/index.php?app=forums&module=post&section=post&do=new_post&f=22

Yes - I heard this last time it was broadcast too (see below). I thought it was brilliant. Steph Flanders was reading/performing it today, wasn't she, I always enjoy listening to her - straight talking.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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