lack of appetite, when broadly visible, removes future speculators from the new investment pool, and starts bleeding old speculators. This will create a downward pressure. As the dynamic plays out the second rung of speculators will bleed out too.
Thats how bubbles burst - as each tranche of speculators bails the next tranche gets spooked through the pricing signals.
Thats how bubbles burst - as each tranche of speculators bails the next tranche gets spooked through the pricing signals.