A Quote by Eugene Fama
People think rationally that the world really is more risky. Imagine in 2008 that investors thought there was a 10% chance we'd have a depression. That would partly justify the drop in prices.
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I really never thought people would think that I was funny, I thought (my friends) thought I was funny because I was their friend, but other people would just think I was an asshole. I was at least partly right.
The paralysis that we have right now when we think about migration is partly because we can't imagine what the world would look like in the future. So I think it's important for writers and artists to try to imagine that.
A lot of things that people think are risky, I don't think are risky. I don't get all that. I think what was really risky for network television was to let cable television to take the summers.
If there's 10,000 people looking at the stocks and trying to pick winners, one in 10,000 is going to score, by chance alone, a great coup, and that's all that's going on. It's a game, it's a chance operation, and people think they are doing something purposeful... but they're really not.
For online universities, like Liverpool and the University of Phoenix, if prices drop by 60%, they still make money. But for the vast majority of traditional universities, if the prices fall by 10%, they are bankrupt; they have no wriggle room.
Imagine if investors in Wal-Mart really cared about bribery at that company's overseas operations or safety standards at its overseas manufacturing plants. If investors pulled their capital, corporate leaders would have to respond.
The government has brought on the housing problem, partly by these very low interest rates, which encouraged many people to go way out on a limb. They've brought it on by highly restrictive building policies, which have caused housing prices to skyrocket artificially. And they've brought it on by the Community Reinvestment Act, which presumes that politicians are better able to tell investors where to put their money than the investors themselves are. When you put all that together, you get something like what you have.
Sending people into space is very important culturally. That's really the justification. You cannot rationally justify it on the basis of the science and technology we get out of it.
Go first to your Highest Thought about yourself. Imagine the you that you would be if you lived that thought every day. Imagine what you would think, do, and say, and how you would respond to what others would do and say. Do you see any difference between that projection and what you think, do, and say now?
After I released 'Jesus, Take the Wheel,' people started saying, Oh, it's kind of risky. You're coming out with a religious song. And I was thinking, Really? I grew up in Oklahoma; I always had a close relationship with God. I never thought it was risky in the least. If anything, I thought it was the safest thing I could do.
Investors frequently benefit from making decisions with less than perfect knowledge and are well rewarded for bearing the risk of uncertainty. The time other investors spend delving into the last unanswered detail may cost them the chance to buy into situations at prices so low they offer a margin of safety despite the incomplete information
Risk is not inherent in an investment; it is always relative to the price paid. Uncertainty is not the same as risk. Indeed, when great uncertainty - such as in the fall of 2008 - drives securities prices to especially low levels, they often become less risky investments.
It is an unfortunate fact that great and foolish excess can come into prices of common stocks in the aggregate. They are valued partly like bonds, based on roughly rational projections of use value in producing future cash. But they are also valued partly like Rembrandt paintings, purchased mostly because their prices have gone up, so far.
I don't recall that I have said and I don't think that I really feel that we need a world government. We need governments of the world that work together and collaborate. But, I can't imagine that there would be any likelihood or even that it would be desirable to have a single government elected by the people of the world.
I think what we need is better understanding of how to do risk analysis of a CDO, but that they still can perform a very valuable function because they can aggregate these risks and pass them around so that mortgages or other kinds of loans can be packaged and sold to investors all over the world, who in most times, would justify a small amount of each one.
To economists, prices serve as crucial signals to producers and consumers. In a regulated market, the state sets prices high enough for private companies to cover their costs and earn a guaranteed profit for their investors. But in a deregulated market, prices should vary with demand and supply.
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