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Monday, February 2, 2009

What Really Makes Prices Go Down?

SELLERS
Only a seller can sell. Sellers set the price by accepting offers. That is the bottom line on prices.

If I have something to sell, and I don't accept low offers, then maybe I don't sell, but neither do I set a low price.

Only a seller can set a low price.
And it isn't an auction. I am under no obligation to sell anything.
So why do sellers accept low prices?
Fear mostly

They hear stuff and it scares them and they say SELL!
Foolishness. Buyers can drive prices up.
Sellers can drive prices down.

That is why short selling can be so destructive.
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