A Quote by Gideon Gono
Those who want luxury cars should buy them at market rates and not ... abuse public funds.
Related Quotes
The underlying strategy of the Fed is to tell people, "Do you want your money to lose value in the bank, or do you want to put it in the stock market?" They're trying to push money into the stock market, into hedge funds, to temporarily bid up prices. Then, all of a sudden, the Fed can raise interest rates, let the stock market prices collapse and the people will lose even more in the stock market than they would have by the negative interest rates in the bank. So it's a pro-Wall Street financial engineering gimmick.
In general, the hedge funds were clobbered by the 1969 bear market, ending up in many cases with records that were worse than those put together by aggressive mutual funds denied the luxury of short sales.
A higher IOER rate encourages banks to raise the interest rates they charge, putting upward pressure on market interest rates regardless of the level of reserves in the banking sector. While adjusting the IOER rate is an effective way to move market interest rates when reserves are plentiful, federal funds have generally traded below this rate.
I buy the market through index funds. Since I'm getting older, I buy TIPS.
The public schools are supported entirely, in most communities, by public funds-funds exacted not only from parents, nor alone from those who hold particular religious views, nor indeed from those who subscribe to any creed at all.
If I buy a luxury gift for someone I love, it's got to be perfect. The product has to be in perfect condition from the company. If I'm going to buy a luxury watch or luxury car or clothing for someone I love, it's got to be perfect, and they've got to handle it perfectly. They have to pack it perfectly. I want the people that I love to have that great experience, because you're paying so much, you should have it perfect.
I've found that when the market's going down and you buy funds wisely, at some point in the future you will be happy. You won't get there by reading 'Now is the time to buy.'
If I buy a car, I use the car, you don't, and the market for cars works pretty well. But there are many other sorts of goods, often very important goods, which are not provided well through the market. Often, these go under the heading of public goods.
Those who embezzle public funds should be ready to face the consequences.
If we allow public funds to be used to support our relatively benign, morally grounded schools, we will have to allow those public funds to be used for any type of private school.
I think those who invest in mutual funds want someone else to do the thinking for them. But the fact that they can move the money around the family of mutual funds just through a phone call lets them feel that they can play tycoons.
If we observe the performance of only those funds that remain active, we will tend to find that the average performance of the surviving funds exceeds that of the market.
If we are going to have a Fed, it should not fall into the tyranny of experts with the a fatal conceit that a few wise people can determine interest rates. Interest rates should be driven by the market, and people's time preference, and we see these boom-bust cycles.
Index funds have regularly produced rates of return exceeding those of active managers by close to 2 percentage points. Active management as a whole cannot achieve gross returns exceeding the market as a while and therefore they must, on average, underperform the indexes by the amount of these expense and transaction costs disadvantages.
University presidents should be loud and forceful in defending the university as a social good, essential to the democratic culture and economy of a nation. They should be criticizing the prioritizing of funds for military and prison expenditures over funds for higher education. And this argument should be made as a defense of education, as a crucial public good, and it should be taken seriously. But they aren't making these arguments.
Subsidies should never be a permanent feature of any market. They should be introduced only to address market failure and they should be withdrawn gradually as those distortions in the market are addressed.
