Let me be a bit trollish so as to establish an actual counter-position (though I actually believe everything I say):
This is where the sequences first turn dumb.
For low-hanging fruit, we first see modern mythology misinterpreted as actual history. In reality, phlogiston was a useful theory at the time, which was rationally arrived at and rationally discarded when evidence turned against it (With some attempst at "adding epicycles", but no more than other scientific theories) . And the NOMA thing was made up by Gould when he misunderstood actual religious claims, i.e. it is mostly a straw-man.
On a higher level of abstraction, the whole approach of this sequence is discussing other peoples alleged rationalizations. This is almost always a terrible idea. For comparison, other examples would include Marxist talk about false consciousness, Christian allegations that atheists are angry at God or want a license to sin or the Randian portrayal of irrational death-loving leachers. [Aware of meta-irony following:] Arguments of this type almost always serve to feed the ingroup's sense of security, safely portraying the most scary kinds of irrationality as a purely outgroup thing. And that is the most simple sufficient causal explanation of this entire sequence.
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Repeating my question from late in the previous thread:
It seems to me that if you buy a stock, you could come out arbitrarily well-off, but your losses are limited to the amount you put in. But if you short, your payoffs are limited to the current price, and your losses could be arbitrarily big, until you run out of money.
Is this accurate? If so, it feels like an important asymmetry that I haven't absorbed from the "stock markets 101" type things that I've occasionally read. What effects does it have on markets, if any? (Running my mouth off, I'd speculate that it makes people less inclined to bet on a bubble popping, which in turn would prolong bubbles.) Are there symmetrical ways to bet a stock will rise/fall?
It gets very interesting if there actually are no stocks to buy back in the market. For details on how it gets interesting google "short squeeze".
Other than that exceptional situation it's not that asymmetrical:
-Typically you have to post some collateral for shorting and there will be a well-understood maximum loss before your broker buys back the stock and seizes your collateral to cover that loss. So short (haha) of a short squeeze there actually is a maximum loss in short selling.
-You can take similar risks on the long side by buying stocks on credit ("on margin" in financial slang) with collateral, which the bank will use to close your position if the stock drops too far. So basically long risks also can be made as big as your borrowing ability.