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#1 − The Bernouilli Fairy

marco

Moral-Philosophic Implications for Socialism in One Sector of a Visit from the Bernoulli Fairy by Brad DeLong (Grasping Reality) has some back-of-the-envelope numbers supporting the idea stated above that “[t]he only reason many schemes tend to succeed instead of fail is that people, in general, pay off their debts and work very hard.”. He comes to the conclusion that, when you invest in the market, “you are accepting assets that promise an average return of $125,000, and yet the market is silling to sell them to you for only $55,000”. Unless, of course, you make this investment right before everything goes in the dumper.