This paper provides an explanation for situations in which the state variables describing the economy do not change, but aggregate consumption experiences significant changes.We present a theory of pseudo-wealth-individuals' perceived wealth that is derived from heterogeneous beliefs and expectations of gains in a bet.This wealth is divorced from real assets that may exist in society.The creation of a market for bets will imply positive pseudo-wealth.Changes in the differences of prior beliefs will lead to changes in expected wealth and hence to changes in consumption, implying ex-post intertemporal individual and aggregate consumption misallocations and instabilities.Thus, in the environment we describe, completing markets increases macroeconomic volatility, raising unsettling welfare questions.