Re: poly: Re: Why interest rates may stay low

CurtAdams writes:
> Well, that's a cute joke, but Robin had a serious question that
> deserves an answer. There are a *lot* of
> smart/rich/persuasive/powerful people on this planet, yet almost
> negligible investment on these hypothetical super-projects.

Actually, they *are* substantial funds spent on "super-projects". They
are called "venture capital funds". I know of some VC projects that
have absorbed hundreds of millions of dollars in venture capital.

You are right that "super-projects" on the scale of tens or hundreds
of billions are rare, but I have an easy explanation for that: most
people, even rich people, are reluctant to risk more than a very small
percentage of their net worth unless there is a strong likelyhood of
success, so raising money on that scale requires a lot more in the way
of guarantees than are available.

Perry
Received on Mon Mar 23 23:44:42 1998