Class,

"If US buyers of yearlings are losing massive sums of money in aggregate, they will eventually be forced to drop out or they will come to their senses."

No, they won't. I mean they might, but only if their other money dries up or their businesses go bad. The people buying these high priced YEARLINGS for the most part don't care if they lose money on them. They really don't. I don't know what part of this that you don't understand. That there are people in the U.S. that have enough money not to care what they are spending on a yearling. There are times when money dries up, but you just can't look at it with the economic model of other businesses. It's a unique and idiosyncratic situation.

There have been lots of insurance IPOs in the past year (I write about them for a living) so you have ample opportunity to test your theories...

My dad has been in the insurance business for over 40 years and a lot of your assumptions are wrong, but you are right that this isn't the place for a long dissertation.

HP