just in case the logic of it unclear to anyone: all securities are volatile to some extent. Private indivs who speculate with borrowed money need gains to make interest payments
foreknowledge of the volatility of the price of the asset depresses the npv, yes. (counterfactual) foreknowledge of the timing of a specific bubble doesn't (but i imagine you know that)
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If there was foreknowledge of timing we wouldn't have a bubble.
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right, or at least it's subject to lucas critique-like conceptual problems
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That's exactly where I was headed.
End of conversation
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