1/ On Infinite Inference
I used to be a good amateur photographer. A long time ago, a friend was worried that the cycle of growth in hard drives was coming to an end.
I asked him why?
"Well, my business documents are only 5 GB or whatever - isn't my 30 GB drive enough?"
@Noahpinion Nice writeup, but 3 big missing drivers: market makers, option hedges, and equity long-short/relative value plays. These are all probably bigger than regular "naked" shorts that get all the press, consistent with the empirical evidence you cite.